Gartner Dataquest Says Asia/Pacific Server Industry to Experience Stronger Growth in 2003
SINGAPORE, December 18, 2002 — Server shipments in Asia/Pacific will total 666,500 units in 2003, up 9.9 percent from 2002 estimates, while server revenue will reach $5.6 billion in 2003, a 3.5 percent increase from 2002, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). The market's growth rate in 2003 will be slightly higher than 2002 (see Table 1).

"The Asia/Pacific region represents a small component of worldwide server revenue, but in the global market, growth is hard to come by, so IT vendors and service providers are becoming increasingly focused on this region," said Matthew Boon, principal analyst for Gartner Dataquest's Asia/Pacific Computing Platforms group.

"Investments have focused on such issues as server consolidation and blade server advantages by the multinationals, which has fueled the competitive nature of the Asia/Pacific server market and led to sustained growth in this segment," said Jennifer Wu, principal analyst for Gartner Dataquest's Asia/Pacific Computing Platforms group.

Table 1
Asia/Pacific Server Market Forecast Estimates
  2001 2002 2003 2004
Unit Shipments (K) 576.1 606.4 666.5 722.0
Year-Over-Year Growth (%) 6.6 5.3 9.9 8.3
End-User Spending ($M) 5,279.9 5,374.9 5,563.2 5688.8
Year-Over-Year Growth (%) 11.6 1.8 3.5 2.3
Source: Gartner Dataquest (December 2002)

Many countries in Asia/Pacific will experience growth, but most of the growth in the region will be attributed to markets in China and India. Gartner Dataquest analysts said there are a number of factors that will help drive server growth in Asia/Pacific.

"Growth is being driven by strong demand from the Asia/Pacific finance sectors, especially banking, coupled with continued investment from many of the region's governments as they seek to capitalize on the benefits of IT," Boon said.

"While a number of disruptive technologies, including Linux and blade servers, will help drive volume server sales, a need for mature markets to consolidate systems will lead to significant investments in server and systems consolidation toward the second half of 2003," Wu said. Gartner Dataquest analysts said this momentum around consolidation will help fuel revenue growth despite the declining average selling price of servers.

Additional information is available in the Gartner Dataquest report "Asia/Pacific: Server Forecast, 2000-2006." This report provides detailed projections for the server industry in the region on a country-level basis based on shipments and revenue. This report can be purchased on Gartner's Web site at
Asia/Pacific: Server Forecast, 2000-2006

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.

Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients leverage technology to achieve business success. Gartner's businesses consist of Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. Fiscal 2002 revenue totaled $907 million. For more information, visit www.gartner.com.

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