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To: kemble s. matter who wrote (172480)	2/28/2003 12:51:05 PM
From: kaka	Read Replies (1) \| Respond to of 176387

Server Market Stabilization Shows Seasonality Return, Report Says Online staff -- Electronic News, 2/28/2003 Although the server market declined 5.2 percent in Q4 2002 to $12.3 billion in terms of factory revenue from Q4 2001, it experienced its strongest sequential growth in the last three years – a sign that the normal seasonality is returning, according to IDC. The overall server market grew 15.2 percent from Q3, pushed by strong growth in the entry server market, IDC said. The entry server market itself grew nearly 18 percent sequentially and nearly 14 percent year-over-year. "The strong sequential growth is a sign of assurance that the server market will return to more normal seasonal predictability later this year," said Jean S. Bozman, VP of global enterprise server solutions at IDC, in a statement. "As customers demand richer technology configurations at lower price points, the entry market will continue to lead market growth as vendors focus on entry products to meet those demands." In the quarter, IBM Corp. extended its lead in the overall server market with a 36.2 percent share, gaining more than 2 points of share from a year ago, IDC said. Dell Computer Corp. and Sun Microsystems Inc. also posted slight year-over-year market share gains, with 1.5 points and 0.2 points, respectively. For all of 2002, worldwide server factory revenues declined 11.6 percent from 2001 to $44.3 billion while unit shipments increased 5 percent to about 4.5 million, the market researcher reported. IBM remains No. 1 with 29.4 percent share, followed by Hewlett-Packard Co. with 23.8 percent share. In the UNIX server market, the competition continued to be strong as HP and IBM tied for the top Q4 position, each with a 30 percent revenue market share inclusive of both Intel Corp. and RISC UNIX based systems. Sun Microsystems followed at a 28 percent share. Still, the UNIX market declined 9.5 percent to $5 billion from the year-ago quarter. For the full year, Sun Microsystems led the market with a 32 percent share, followed by HP with 30 percent. However, combining Compaq and HP as one entity for the full year would have tied it for the No. 1 position in the UNIX market. "As we indicated last quarter, the No. 1 position in the UNIX market is very unpredictable," said Steve Josselyn, research director, IDC's enterprise server fundamentals program, in a statement. "This quarter there was no clear leader as the top three vendors fought head-to-head, resulting in ties in multiple segments of the UNIX market." The Linux server market was the brightest spot during the quarter, posting a 41 percent increase to $607 million from Q4 2001. "As vendors continue to offer more compelling business and product strategies to support the Linux market, the competition has definitely increased," said Mark Melenovsky, research director, IDC's Internet infrastructure program, in a statement. "While HP continues to lead the Linux market, the No. 2 and 3 spots are one share point apart." IBM with a 20.5 percent share edged out Dell by one point for the No. 2 spot, IDC said.