GartnerGroup's Dataquest Says Worldwide Server Industry Suffered 11 Percent Decline in the Second Quarter; New Dataquest Program Provides Quarterly Server Market Statistics
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 7, 1998--The server
industry endured the effects of the Asian economic crisis as worldwide
server revenue approached $9.9 billion in the second quarter of 1998,
an 11.2 percent decline from the same period last year, according to
Dataquest Inc., a unit of Gartner Group, Inc. (NYSE:IT).
Server revenue in the Asia/Pacific region declined 33 percent
during the second quarter of this year, and server revenue in Japan
dropped 31.6 percent versus the second quarter of 1997 (see Table 1).
"Most server OEMs experienced a falloff in sales during the
second quarter, but keep in mind that the second quarter was a tough
one for anyone with exposure in Asia," said Kimball Brown, vice
president and chief analyst for Dataquest's Emerging Server
Technologies Worldwide program.
-0-
*T
Table 1
Worldwide Server Revenue Estimates by Region for Second Quarter 1998
(Millions of Dollars)
Region Q2/97 Revenue Q2/98 Revenue Growth (%)
United States 4,240 3,987 -6.0
Western Europe 3,387 3,646 7.7
Asia/Pacific 968 641 -33.8
Japan 1,694 1,159 -31.6
Canada 251 181 -27.8
Rest of World 594 271 -54.3
Total 11,134 9,885 -11.2
Source: Dataquest (October 1998)
IBM held onto the No. 1 position in the second quarter of 1998
despite a slight decline in market share versus the same period last
year (see Table 2). Hewlett-Packard moved into the No. 2 position, and
Compaq/Digital slipped into the No. 3 slot as its revenue declined
more than 7 percent during the second quarter.
Table 2
Worldwide Server Revenue Estimates for Second Quarter 1998
(Millions of Dollars)
Q2/97 Q2/97 Market Q2/98 Q2/98 Market Growth
Company Revenue Share (%) Revenue Share (%) (%)
IBM 3,135 28.2 2,626 26.6 -16.2
Hewlett-Packard 1,276 11.5 1,427 14.4 11.8
Compaq/Digital 1,432 12.9 1,329 13.4 -7.2
Sun Microsystems 844 7.6 1,157 11.7 37.0
Siemens Nixdorf 448 4.0 456 4.6 1.9
Others 3,999 35.9 2,890 29.2 -27.7
Total 11,134 100.0 9,885 100.0 -11.2
Note: Totals may not add to 100 percent due to rounding.
Source: Dataquest (October 1998)
*T
-0-
"Entry level servers suffered from weakness in Asian markets and
product transitions as the market shifted from Pentium Pro to Pentium
II. The announcement of Xeon may have also contributed to the
decline," Brown said.
"The mainframe segment suffered a large decline as problems in
Japan and a transition in IBM's product line to the G5 processor
caused some users to wait for the new systems due late in the third
quarter."
Additional information on this market is available in Dataquest's
Emerging Server Technologies Worldwide program. This program publishes
quarterly data on the worldwide server industry. This program covers
various segments of the server industry, such as Internet servers,
thin clients, thin (appliance) servers, and the emerging
storage/server area networks.
Detailed information on this program is available on Dataquest's
Web site at
gartner.com.
"Internet standards and shifts in technologies such as fiber and
wide area communications are having a profound impact on the $51
billion server market," Brown said. "This program provides clients
with the information and analysis vital to the development of
strategic business, marketing, and product plans and is key to
understanding investment opportunities in the evolving server market."
To subscribe to this program, please call 800/419-DATA, or
408/468-8009. More information about Dataquest's programs,
descriptions of recent research reports, and full text of press
releases can be found on the Internet at dataquest.com.
Brown will provide additional analysis on the server industry
during the upcoming GartnerGroup Symposium/ITxpo 98. This conference
is the IT industry's largest, most comprehensive, and prestigious
strategic planning event. GartnerGroup Symposium/ITxpo 98 will be held
Oct. 12-16 in Lake Buena Vista, Fla.; Oct. 21-23 in Tokyo; Oct. 28-30
in Brisbane, Australia; and Nov. 2-5 in Cannes, France.
For more information, call 1-800/778-1997 or 1-203/316-6757,
e-mail ashley.pearce@gartner.com, or visit the GartnerGroup Web site
at www.gartner.com/events.
GartnerGroup's Dataquest is the recognized leader in providing
the high-technology and financial communities with market intelligence
for the semiconductor, computer systems and peripherals,
communications, document management, software, and services sectors of
the global information technology industry.
As the world's leading authority on IT, GartnerGroup provides
clients with a wide range of products and services in the areas of IT
advisory services, measurement, research, decision support, analysis,
and consulting.
Founded in 1979, with headquarters in Stamford, Conn.,
GartnerGroup is at the center of a global community with more than
11,000 client organizations served by analysts in 80 locations
worldwide. Additional information about the company is available on
the Internet at gartner.com.
CONTACT:
Dataquest
Tom McCall, 408/468-8312
tom.mccall@gartner.com |
