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Global server market shows positive growth in third quarter: IDC

Posted on: Monday, 1 December 2003, 06:00 CST

Global server market shows positive growth in third quarter: IDC

LOS ANGELES, Nov. 26 (Xinhua) -- Worldwide server systems market continues to gain ground, showing a 2 percent revenue growth in the third quarter of 2003, according to a research released Wednesday by IDC.

"This gain was nearly one percentage point higher than expected, " said IDC, a US high-tech market research firm, in a statement.

According to IDC, worldwide server factory revenue topped out at 10.8 billion US dollars. It was the second consecutive quarter of positive growth for server revenues worldwide, following more than two years of decline during the economic downturn.

Server unit shipments grew dramatically by 19.5 percent, reflecting the underlying demand for volume servers, which are small servers priced less than 25,000 dollars, IDC said.

The high-tech market research firm found that volume server revenue went up 9.5 percent year-over-year, while sales of more expensive server systems in the midrange enterprise, usually priced at 25,000 to 499,999 dollars, grew by 7 percent year-over- year. In contrast, high-end enterprise servers, priced 500,000 dollars or more, declined in revenue by 14 percent year-over-year.

"Volume servers are generating most of the positive momentum in the worldwide server market," said Vernon Turner, vice president of IDC's Worldwide Server Group.

Turner added that the trend shows that the information technology community has embraced volume server deployments as a mainstream technology to meet a wide range of data-processing requirements and to support a wide variety of computing workloads.

According to IDC, IBM held onto its number 1 spot in the worldwide server systems market with 31.1 percent market share in factory revenue, gaining 1.4 points of share year-on-year.

HP took the number 2 spot with 27.7 percent share, gaining 0.4 points of share year-on-year, IDC said. The gap between Sun and Dell continued to close, with number 3 Sun showing a revenue share of 10.8 percent worldwide, while number 4 Dell showing a revenue share of 9.5 percent.

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