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To: Night Writer who wrote (40735)	12/21/1998 11:28:00 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

NT Server Makers Carve Out Niches by: hlpinout 46892 of 46897 December 21, 1998 9:00 AM ET Data gathered by zd market Intelligence shows that, while the adoption of Windows NT servers has been rapid and broad-based, individual server makers are finding their own market niches. Information from the third quarter indicates that servers that run the Windows NT operating system have a significant presence in businesses of all sizes. About 43 percent of Windows NT servers are installed at very large locations, with 1,000 or more employees; 25 percent are installed at very small locations, with between one and 99 employees. Although there are more Windows NT servers present in the larger locations, when compensating for the difference in size of the companies polled, the difference in the number of servers is minimal, showing that smaller sites are jumping on the Windows NT bandwagon. Yet if you take a look at where specific Windows NT vendors' servers are installed, there are some striking differences. The top five vendors have spread their products through the marketplace in distinctive ways. Where Compaq Computer Corp.'s and Hewlett-Packard Co.'s products have primarily landed in the largest enterprises, Dell Computer Corp.'s and Gateway Inc.'s servers are dispersed fairly evenly across the small, medium and large sites. IBM has its greatest concentration within the midsize sites. These differences could have to do with each vendor's target marketing and sales strategies, but it is impossible to conclude with certainty. This distribution does not describe vendor market share in those segments; it simply shows how their products are concentrated in the segments. With Windows NT just starting its adoption cycle and with small businesses really coming into the mainstream, these trends bear watching. Both the power of competition and the aggressiveness of the small and medium-size businesses make it likely that shifts will occur in the mix of markets targeted by server vendors. Both small and medium-size business segments are growing swiftly, and we expect the niches that Windows NT server vendors have created for themselves will change in the coming months. --ZD Market Intelligence