PC Server Market on Track for Continued Success According to IDC Research
PR Newswire - January 13, 1998 08:04
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Popularity of NT Helps Drive Market
FRAMINGHAM, Mass., Jan. 13 /PRNewswire/ -- The PC server market
experienced a solid 1997 as both shipments and revenues saw substantial gains.
Estimates show revenues jumped 35 percent to exceed $10.5 billion on shipments
of 1.75 million units, according to new research from International Data
Corporation (IDC).
IDC's new report, 1997 PC Server Year in Review: The Strong Get Stronger,
reveals PC server revenue gains are even more significant given that the Entry
Server market was up only 19 percent, the Midrange Server market just two
percent, and the High-End Server market actually declined four percent, The
forces driving the surge in PC server adoption include demand by small
businesses, popularity of NT, and continuing departmental and increasing
central IS procurements.
IDC defines a PC server as: Intel-based (x86) machines that are expressly
built, marketed, and sold as servers. These systems can be either uni- or
multiprocessor. They run standard, off-the-shelf network operating systems
(e.g., Netware, NT, SCO Unix, etc.) and have a U.S. base price of less than
$25,000.
The United States was the largest market for PC servers in 1997,
accounting for more than 35 percent of the worldwide PC server market.
Western Europe also continues its rapid acceptance of PC servers as NT
adoption helped boost growth in Northern European countries. Japan had a
volatile year with a soft second quarter. "This unsteadiness in Japan can be
traced to a Japanese tax law, enacted in April 1997, that effectively raised
prices on computer products," said Amir Ahari, analyst for IDC's Commercial
Systems and Servers program. "Vendors dropped prices to off-set the tax
increase and help the market get back to its feet."
PC Server Vendors
The top four PC server vendors continued to dominate in 1997:
-- Compaq remains the number one vendor in both U.S. and worldwide
markets. IDC believes the company's worldwide revenues will pass $3.7 billion
in 1997. Compaq's long-term goal is to be a $50 billion company by the year
2000.
-- Hewlett-Packard's growth comes from a strong customer base and solid
VAR network. Overall, demand for HP's NetServer E-class and NetServer LH gave
the company solid momentum in the low-end PC server market.
-- IBM re-evaluated its PC server strategy with the launch of its
Netfinity product line. The company's worldwide factory revenue grew 24
percent, although it did lose a point of market share in 1997.
-- Dell is the leading direct distributor of PC servers. Dell experienced
an astounding 181 percent worldwide factory revenue growth in 1997 to capture
revenue share of six percent.
Not all vendors are reaping the rewards of strong PC server market growth.
Apple, NCR, Olivetti, and Acer all continue to lose market share. These
vendors have not invested in key areas to be successful in the PC sever space.
Overall, IDC predicts 1998 will be a transition year for PC servers. As
customers anticipate new high-end solutions from Intel and Microsoft, PC
servers may experience slower growth at the high end. However, cost benefits
and the continued growth of NT will keep this market growing throughout the
year.
To order a copy of 1997 PC Server Year in Review: The Strong Get Stronger
(IDC #B15114) please contact Cheryl Toffel at 508-935-4389.
About IDC
Headquartered in Framingham, Mass., International Data Corporation
provides IT market research and consulting to more than 3,900 high-technology
customers around the world. With a global network of 300 analysts in more
than 40 countries, IDC is the industry's most comprehensive resource on
worldwide IT markets, products, vendors, and geographies.
IDC/LINK, an IDC subsidiary, researches and analyzes the home computing
market, leading-edge technologies in telecommunications and new media, and the
convergence of computing and consumer electronics.
IDC's World Wide Web site (http://www.idc.com) contains additional company
information and recent news releases and offers full-text searching of recent
research.
IDC is a division of International Data Group, the world's leading IT
media, research and exposition company.
NOTE: All product and company names may be trademarks or registered
trademarks of their respective holders.
SOURCE IDC
/CONTACT: Amir Ahari, 508-935-4502, aahari@idcresearch.com or
Patrick Gorman, 508-935-4369, pgorman@idcresearch.com both of IDC/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 113987/
/Web site: idcresearch.com |
