Feeds

US server sales show green shoots of recovery

Rest of world is barren

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

The server market remained flat during the first quarter this year, as the slowdown in IT spending continued to bite.

However the US market is stabilising, giving rise to hopes of a recovery in spending later this year, according to Gartner Dataquest. The analyst firms reports a preliminary figure for server shipments of 1.09 million in the Q1 2002, a modest increase of 0.6 per cent over Q1 2001.

Compaq remained in the top spot with 22.8 per cent of the worldwide server shipments (by volume), followed by Dell and IBM, with 17.8 per cent and 14.3 per cent, respectively. Dell was the only vendor to record positive double-digit year-over-year growth.

"Businesses are not ready to spend on tech products unless it's absolutely crucial," said Shahin Naftchi, a senior analyst at Gartner Dataquest. "Customers mostly purchase the least expensive systems to meet their short-term needs and can show a quick return on their IT investment."

Sales in the US were the one bright spot in an otherwise subdued market. Sales of servers in the US were up 7.6 per cent in the quarter, with shipments of 419,622 units in Q1 2002, up from 390,027 units in Q1 2001. Dell, helped by competitive pricing through its build to order model, increased its lead in the US market with 26 per cent of unit shipments, followed by Compaq with 21.4 per cent, according to Gartner Dataquest.

Gartner Dataquest said it appears the US market is "starting to stabilize" but said it was too early to talk of a recovery, which will only become apparent over the next six months.

Because of the length of server purchasing cycles, the performance of the next two quarters will be crucial in giving a better indication of server market recovery. ®

Worldwide Server Unit Shipment Estimates for 1Q02 (units)
Company 1Q02 Shipments 1Q02 Market Share (%) 1Q01 Shipments 1Q01 Market Share (%) Growth (%)
Compaq 248,201 22.8 244,273 22.6 1.6
Dell 193,407 17.8 169,406 15.7 14.2
IBM 155,107 14.3 157,232 14.5 -1.4
Hewlett-Packard 93,641 8.6 108,038 10.0 -13.3
Sun Microsystems 68,655 6.3 69,484 6.4 -1.2
Others 329,418 30.2 333,121 30.8 -1.1
Total Market 1,088,429 100.0 1,081,554 100.0 0.6

Related stories

Heartbeat detected in US PC market
Count those fingers before you buy Dell - Gartner
European IT spend is flatter than a flat pancake
HP stays top of the midrange - Gartner
IBM Intel servers '80 per cent cheaper than Dell'

Internet Security Threat Report 2014

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?