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To: PAL who wrote (111482)	3/24/1999 10:54:00 AM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

Outlook -Server business----->IDC reports---->Dell's market share grew 100%. Paul-san Now get a load of this,I don't you know this but the worldwide server business last year was worth about +$60 Billion dollars and expected to grow nicely during 1999. Now look at Dell kicking ass,Dell's market share grew 100% (From 2% to 4% during 98) and the rate of growth for Dell was phenomenal 89% in 1998,these are stunning numbers though Dell is growing from a lower base.I think until Dell achieves a much larger market share we can expect this phenomenal growth in the server business for many years to come. =================== FRAMINGHAM, Mass., March 23 /PRNewswire/ -- Recent fourth quarter Q498 Worldwide Highlights -- Servers selling for under $6K posted unit growth of 62% over the same quarter last year, accompanied by revenue growth of 76% year-over-year, largely driven by price declines. -- Japanese vendor Hitachi suffered through Q498, with worldwide revenues falling by nearly 28% compared to a very weak Q497. Fujitsu and NEC, also of Japan, eked out growth of 1% over last year's fourth quarter. -- Sales of servers running Intel Architecture microprocessors increased by 29% in unit volume and rose 15% in revenues when compared with Q497. Sales of servers running RISC processors increased by 3% in unit volume over last year, though revenue declined by 3% over the same period. -- Pockets of the server market continue to return positive growth numbers. For example, total revenue for servers running the NT operating system increased by 28% over Q497. In addition, vendors like Dell and Sun Microsystems continue to excel in their market segments. -- Compaq Computer Corp. (including Digital and Tandem) saw revenue growth of just over 1% from the same period last year, despite double-digit revenue growth in the Asia/Pacific region and Western Europe. "The server market in 1998 was defined by price pressure. Whether it was pressure created by early-1998 price cuts designed to unclog sales channels, or the result of the Asian crisis, the net effect was revenue declines for most vendors. The bottom line is, customers bought a lot of servers this quarter at lower than ever price points," said Jim Williamson, Senior Analyst for the Quarterly Server Tracker program. Top 10 Vendors, Worldwide Factory Revenue, Q4 1998 ($M) Q497 Market Share Q498 Market Share Growth Q498/Q497 IBM $5,234 31% $4,553 28% -13% Compaq $1,430 8% $2,072 13% 45% Hewlett -Packard $1,782 11% $1,886 12% 6% Sun Microsystems $1,275 8% $1,508 9% 18% Fujitsu $766 5% $776 5% 1% NEC $630 4% $638 4% 1% Dell $319 2% $603 4% 89% Siemens $381 2% $599 4% 57% Hitachi Ltd $693 4% $500 3% -28% SGI $392 2% $271 2% -31% Others $4,038 24% $2,796 17% -31% Total Market $16,940 100% $16,202 100% -4% Source: IDC, 1999 Market Outlook "By the second half of this year, improving economic conditions should boost server investments in the Asia region. We expect that improvement, combined with continued strength in domestic and European economies, to produce market growth beyond the 1998 results," said Steve Josselyn, Research Director for IDC's Commercial Systems and Server Research program.