Gartner Dataquest Says Western European Server Market Grew 4 Percent in the Third Quarter of 2000
RISC/Unix Servers Increased 43 Percent
Egham, United Kingdom, November 23, 2000 - Server shipments in Western Europe increased by 4 percent in the third quarter of 2000, putting an end to two consecutive quarters of decline, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). Server shipments in Western Europe reached 267,000 units compared to 256,000 units over the same period last year.
"The pre-year-2000 spike in demand for servers in 1999 saw shipments soar to unprecedented heights at that time, and the market is only now showing signs of a rebound," said Karen Benson, principal analyst at Gartner Dataquest. "Although 4 percent growth is a far cry from the 30 percent plus growth we witnessed in the first half of 1999, it is deceptive in that it hides underlying pockets of strength in several major services-led European markets, including the United Kingdom, the Nordic countries and Switzerland."
Compaq remains the overall market leader in the Western European server market, followed by IBM and Hewlett-Packard (see Table 1). Of the top five vendors, only IBM, Dell and Sun Microsystems increased shipments year-on-year, with Sun doubling shipments over the previous year. Market consolidation continued with second-tier and third-tier vendors being increasingly overshadowed by the multisegment players. Indeed, in the third quarter, the top six vendors collectively represented 91 percent of market shipments.
Table 1
Western European All Server Shipment Estimates for Third Quarter 2000 (Units)
Company 3Q00 Shipments
3Q00 Share (%) 3Q99 Shipments 3Q99 Share (%) Growth (%)
Compaq 85,087 32 87,221 34 -2
IBM 50,613 19 45,373 18 12
Hewlett-Packard 34,367 13 34,731 14 -1
Dell Computer 28,384 11 25,524 10 11
Sun 22,131 8 10,865 4 104
Others 45,977 17 52,169 20 -12
Total Market 266,559 100 255,883 100 4
Source: Gartner Dataquest (November 2000)
 
Reversing the trends of the late 1990s, Intel server architectures have been hit the hardest by the market slowdown of the past two quarters, posting year-on-year growth of 1 percent for the third quarter. RISC/Unix product lines, on the other hand, soared to a 43 percent shipment increase for the second consecutive quarter.
The RISC/UNIX revival continues," Ms. Benson added. "This is primarily driven by Web-related IT investments, and we believe this trend will continue throughout this year and beyond. Companies are starting to rethink server deployment, and we're beginning to see server specialization to accommodate varying requirements from dot-coms, telcos and service providers. Front-end Web and back-end engines are creating a strong demand for powerful, reliable Unix systems."
Additional information on the European PC market is available in Dataquest's PC Quarterly Statistics Europe program. To subscribe to this program, 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 Web www.dataquest.com. For further press inquires, please contact Laurence Goasduff at Gartner on +44-(0)1784-487195 or by e-mail at laurence.goasduff@gartner.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.

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