LONDON, September 9, 2002 - The Western European server market contracted again in the second quarter of 2002 after dropping by 22.5% in the first quarter, according to IDC. Western European factory revenues declined 17% from $3.5 billion in 2Q01 to $2.9 billion in 2Q02. The quarter also marked the first time that IBM was challenged and outrun by a major competitor - HP - for the leading position of overall server market revenue leader. HP's May acquisition of Compaq allowed it to pass IBM in terms of server revenues in 2Q02.
"The grueling competition fueled by continually constrained budgets made its mark on the Western European server market again, affecting most but not all countries," said Thomas Meyer, Expertise Center Manager for IDC's European Server Group. "The UK continued to show annual growth but weakness in the German, French and Italian markets weighed heavily. As corporate budgets remained tight, vendors kept focusing on the SMB market, server and application consolidation issues and solution stack building."
In the first quarter after its merger with Compaq, HP managed to gain the No. 1 position in the Western European market in terms of factory revenues. Despite IBM gaining a percentage market share point and declining at a slower rate than HP, the combined portfolio of the historically No. 2 and No. 3 in the server market in factory revenue terms, translated into a $114 million lead.
Of the top-tier vendors, Dell was the only company to show annual unit and factory revenue growth and, like IBM, gained one percentage point market share over the quarter a year ago. Sun Microsystems generated the highest annual unit growth, followed by Fujitsu Siemens.
On a sequential basis, Sun Microsystems was the only company to show positive growth in both units and revenues. As a result of this growth Sun Microsystems was able to hold on to top spot in the Unix RISC segment of the market, which showed an overall revenue decline sequentially of 6%, but narrowly lost out on the lead of the total Unix market, which again went to HP. "The RISC Unix market is going through some changes," said Nancy Taylor, Senior Unix Analyst within IDC's European Server Group. "The high-end portfolio build-up of RISC Unix has been significant and had a positive effect on revenues, but everywhere else these systems are under immense pricing pressure from customers with tight IT budgets and Intel-based offerings."
Top 5 Vendors, Western European Server Factory Revenue, Second-Quarter 2002 (Revenues in Millions)
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| | 2Q02 | | 2Q02 | | Revenue |
| | | Market | | Market | growth |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| Vendor | Revenue | Share | Revenue | Share | 2002/2001 |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| HP | $964 | 33.0% | $1,221 | 34.8% | -21.0% |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| IBM | $850 | 29.1% | $986 | 28.1% | -13.8% |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| Sun | $476 | 16.3% | $491 | 14.0% | -3.0% |
| Microsystems | | | | | |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| Fujitsu | $247 | 8.5% | $328 | 9.3% | -24.7% |
| Siemens | | | | | |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| Dell | $165 | 5.6% | $160 | 4.6% | 2.8% |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| | | | | | |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| Others | $218 | 7.5% | $324 | 9.2% | -32.5% |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| | | | | | |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
| | | | | | |
| All vendors | $2,920 | 100.0% | $3,509 | 100.0% | -16.8% |
| | | | | | |
|--------------+---------+---------+---------+---------+-------------|
Note: Data for HP includes revenue for both HP and Compaq.
IDC's Western European Quarterly Server Tracker is a quantitative tool for analyzing the server market on a quarterly basis. It includes quarterly shipments (both ISS and upgrades) and revenues (both customer and factory), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture.
For more information on IDC's Western European Quarterly Server Tracker please contact Expertise Center Manager Thomas Meyer on + 44 (0) 20 8987 7203 or email tmeyer@idc.com.
About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
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For more information, contact:
Thomas Meyer
+44 (0) 20 8987 7203
tmeyer@idc.com
Terry Cummings
+44 (0) 20 8987 7231
tcummings@idc.com
Explore new economic landscapes, technology solutions, and strategies for IT investments at IDC's European IT Forum.
Date: September 16-17, 2002
Location: Grimaldi Forum, Monaco
For more information, visit http://www.idc.com/itforum02.