IDC: Entry Servers Defy Market, Increase 10 Percent

The entry server market managed to defy the downward momentum of the high-end and midrange server markets and finish 1999 up 10 percent, according to International Data Corp. (IDC). IDC classifies servers priced under $100,000 as entry servers.

During 1999, Compaq Computer Corp. ( took the lead in the entry server market from IBM Corp. ( with a 44 percent increase over its 1998 numbers that brought its revenues to over $6.8 billion. IBM, meanwhile, suffered a 2 percent loss, with its revenues dropping to $4.8 billion. Dell ( posted the greatest jump in revenue with a 60 percent increase over last year, and Sun Microsystems Inc. ( also outperformed the market with 24 percent growth. IDC ( estimates the total worldwide server market exceeded $29 billion in 1999.

IDC cautions, however, that the types and brands of servers that did well during the 1990s won't necessarily perform as successfully in the new millenium. They attribute this to the emergence of Linux and IA-64 systems. "Winning characteristics for servers in the 2000s include built-in high-availability features, hot-swap hardware components, redundant power supplies, and competitive pricing for entry-level, midrange, and high-end servers," says Jean Bozman, director for IDC's Commercial Systems and Servers research program.

IDC's report, 1999 Entry Server Year in Review: Navigating the Y2K Pitfalls, shows vendors' 1997-1999 revenues and market shares in the worldwide entry server market. For comparison, the report also shows vendors' revenues in the total server market. The report analyzes vendors' 1999 performances, the competitive landscape, and major trends affecting the market. -- Isaac Slepner

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.