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Internet server market set to double

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The market for Internet servers is set grow by 114 per cent 1998, according to new research from Dataquest. The market will hit $13.27 billion this year, more than twice the $6.27 billion worth of servers sold in 1997. Leading the market will be mid-range systems going primarily to ISPs. This sector alone will grow to $41 billion by 2001, said Dataquest, and continue to dominate the server market through 2002. Mid-range systems accounted for 67 per cent of all server purchases last year, with revenue reaching $3.97 billion, compared to $1.60 billion for the entry-level Internet server market. Sun was the leading vendor, with 22.3 per cent of the overall Internet server market, followed by HP at 19.6 per cent. Still, there is room for other vendors, reckons Dataquest. "It's important to remember that the Internet server market is still in its infancy and has the kind of dynamic qualities that promise not just change, but very quick change," said Kimball Brown, VP and chief analyst for Dataquest's Intranet and Web Servers Worldwide programme. "As a result, significant opportunities exist for vendors that do not currently reside in the upper reaches of the revenue and shipment picture." ®

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