Feeds

US server sales show green shoots of recovery

Rest of world is barren

  • alert
  • submit to reddit

Security for virtualized datacentres

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'

Providing a secure and efficient Helpdesk

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

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.
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.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.