Server revenues slip

By Sally Watson, 18 December 1998 16:40

NEWS Despite a 15 per cent increase in worldwide shipments, overall revenue for server sales is down by 3 per cent compared to the same quarter last year. That's the major finding of IDC's third quarter server report. According to the research house, pricing pressure - particularly in low-end sales and the Asian market - accounts for the disparity in shipment growth and revenue drop. Sun Microsystems has seen a healthy 39 per cent growth in revenue, making it the fourth largest server vendor in the world. IBM remains the most successful in terms of revenue but only saw a growth of 20 per cent. Hewlett-Packard and Compaq fill the number two and three spots respectively. Japanese server vendors including Hitachi, Fujitsu and NEC have seen revenues drop sharply as the effects of the South-East Asian economic crisis hit the market. Sales of Unix server operating systems grew by 7 per cent, while Windows NT saw a 16 per cent growth - a slow down from previous quarters which have seen growth of up to 76 per cent.

Post your comment

In order to post a comment you need to be registered and logged in.

Log in or create your silicon.com account below

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy.

Questions about membership? Find the answers in the Membership FAQ