Gartner Dataquest Says Worldwide Server and Workstation Markets Had Mixed Results in Third Quarter 2000
San Jose, Calif., November 2, 2000 - The worldwide server industry enjoyed a healthy third quarter in 2000, while the workstation market experienced modest growth in the quarter, according to preliminary statistics by Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). Worldwide server shipments surpassed 1 million units in the third quarter, which was an increase of 16.5 percent over the third quarter of 1999. Worldwide workstation totaled 381,835 units in the quarter, a 3.9 percent increase over the same period last year.
The top three server vendors accounted for more than 58 percent of the total market in the third quarter (see Table 1). Compaq extended its lead in the market, as its market share topped 27 percent. Dell narrowed its gap with IBM for the No. 2 position, as Dell grew 41 percent in the quarter.
"IBM's supply chain constraints were reduced during the third quarter, allowing it to address the backlog carried over from the previous quarter," said Jeffrey Hewitt, principal analyst for Gartner Dataquest's Servers Worldwide program. "Dell benefited from an aggressive marketing strategy on operating systems and advantageous price/performance ratios on lower-end systems."
Table 1
Preliminary Worldwide Server Unit Shipment Estimates for 3Q00 (Units)
Company
3Q00
Shipments
3Q00 Market
Share (%)
3Q99
Shipments
3Q99 Market
Share (%)
Growth (%)
Compaq
275,777
27.3
229,865
26.5
20.0
IBM
164,995
16.4
160,836
18.6
2.6
Dell
150,414
14.9
106,614
12.3
41.1
Hewlett-Packard
110,090
10.9
110,801
12.8
-0.6
Sun Microsystems
72,006
7.1
41,765
4.8
72.4
Others
235,560
23.3
216,011
24.9
9.1
Total Market
1,008,842
100.0
865,892
100.0
16.5
Source: Gartner Dataquest (November 2000)
 
Although worldwide workstation shipments slowed in the second quarter of 2000 for many of the vendors because of memory supply issues, there were no such component challenges reported for the third quarter of 2000. Dell and Sun Microsystems were the only top-tier workstation vendors to have growth rates above the industry average (see Table 2).
"Some vendors experienced minor shortages in graphics cards in the third quarter," said Pia Rieppo, principal analyst for Gartner Dataquest's Workstations Worldwide program. "However, overall, the industry is right on track for Gartner Dataquest's forecast 8 to 9 percent annual growth rate from 1999 to 2000."
Table 2
Preliminary Worldwide Workstation Unit Shipment Estimates for 3Q00 (Units)
Company
3Q00
Shipments
3Q00 Market
Share (%)
3Q99
Shipments
3Q99 Market
Share (%)
Growth (%)
Dell
90,000
23.6
63,658
17.3
41.4
Sun Microsystems
81,500
21.3
74,491
20.3
9.4
Hewlett-Packard
67,770
17.8
81,828
22.3
-17.2
Compaq
51,530
13.5
49,628
13.5
3.8
IBM
38,100
10.0
46,299
12.6
-17.7
Others
52,935
13.9
51,480
14.0
2.8
Total Market
381,835
100.0
367,384
100.0
3.9
Source: Gartner Dataquest (November 2000)
 
These results are preliminary at this time. Final statistics will be available soon to clients of Gartner Dataquest's Servers Quarterly Statistics program and Gartner Dataquest's Workstations Quarterly Statistics Worldwide program. These programs offer a comprehensive, global market information service that analyzes and documents the server and workstation industries.
To subscribe to these programs, please call 800-419-DATA, or 408-468-8009. More information about Gartner Dataquest's programs, descriptions of recent research reports and full text of press releases can be found on the Internet at http://www.dataquest.com.
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.
About Gartner
Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit; Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and at http://www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 1999 revenue of $859 million. Gartner's 4,300 associates, including 1,400 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at http://www.gartner.com.
CONTACT:
Tom McCall
(408) 468-8312
tom.mccall@gartner.com