Feeds

US server sales show green shoots of recovery

Rest of world is barren

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

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'

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.