Gartner Dataquest Says Worldwide Server Revenue Totaled $54 Billion in 2000.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--March 7, 2001

The worldwide server industry had revenue of $53.8 billion in 2000, an increase of 11 percent over 1999 revenue, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). The industry benefited from a strong fourth quarter as revenue reached $14.8 billion, an 18 percent increase over the fourth quarter of 1999.

"We are not yet seeing the effects of an economic slowdown on the server market, and competition is continuing to heat up as the market matures," said Jeffrey Hewitt, principal analyst covering servers for Gartner Dataquest's Computing Platform Worldwide group.

Despite flat growth in 2000, IBM retained its No. 1 position in the server industry based on worldwide revenue (see Table 1). Dell Computer and Sun Microsystems experienced the strongest growth among the top-tier vendors with growth rates of 73 percent and 43 percent, respectively.

Table 1
Worldwide Server Vendor Revenue Estimates for 2000
(Billions of Dollars)

                             2000     2000     1999     1999
                           Revenue   Market  Revenue   Market   Growth
                                      Share             Share     (%)
                                       (%)               (%)
Company

IBM                         13,736     25.5   13,728     28.3      0.1
Sun                          9,711     18.1    6,793     14.0     43.0
Compaq                       8,599     16.0    6,767     14.0     27.1
Hewlett-Packard              7,157     13.3    6,975     14.4      2.6
Dell                         3,436      6.4    1,988      4.1     72.9
Others                      11,122     20.7   12,198     25.2     -8.8
Total Market                53,761    100.0   48,448    100.0     11.0

Source: Gartner Dataquest (March 2001)

In the U.S. server market, revenue reached $20.3 billion in 2000, an increase of 15 percent over 1999 (see Table 2). Sun was the No. 1 vendor in the United States based on revenue with 24 percent market share. IBM slipped to the No. 2 position with 23 percent market share, followed by Compaq at No. 3 with 19 percent of U.S. server revenue.

Table 1
U.S. Server Vendor Revenue Estimates for 2000
(Billions of Dollars)

                             2000     2000     1999     1999
                           Revenue   Market  Revenue   Market   Growth
                                      Share             Share     (%)
                                       (%)               (%)
Company

Sun                          4,785     23.5    3,304     18.7     44.8
IBM                          4,692     23.1    5,205     29.4    -10.0
Compaq                       3,894     19.2    2,829     16.0     37.6
Dell                         2,351     11.6    1,306      7.4     80.0
Hewlett-Packard              2,196     10.8    2,497     14.1    -12.0
Others                       2,413     11.9    2,563     14.5     -5.8
Total Market                20,330    100.0   17,704    100.0     14.8

Source: Gartner Dataquest (March 2001)

"Demand for servers is still high, especially in e-business, front-end Web, Web application and database servers, which will continue in 2001," said Shahin Naftchi, senior analyst covering servers and workstations for Gartner Dataquest's Computing Platform Worldwide group.

Additional information on the server industry is available in the Gartner Dataquest Alert, "Fourth Quarter and Year 2000 Final Estimates for Servers." This Alert provides vendor market share results for both worldwide and U.S. server industry on a revenue and shipment basis. To purchase this Alert or subscribe to Gartner Dataquest's Servers Quarterly Statistics program, please call 800-419-DATA, or 408-468-8009.

Gartner 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.

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