Gartner Dataquest Says Worldwide Server Revenue Totaled $54 Billion in
2000
SAN JOSE, Calif., March 7, 2001 — The worldwide server industry had revenue of
$53.8 billion in 2000, an increase of 11 percent over 1999 revenue, according to
Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). The industry
benefited from a strong fourth quarter as revenue reached $14.8 billion, an 18
percent increase over the fourth quarter of 1999.
"We are not yet seeing the effects of an economic slowdown on the server market,
and competition is continuing to heat up as the market matures," said Jeffrey
Hewitt, principal analyst covering servers for Gartner Dataquest's Computing
Platform Worldwide group.
Despite flat growth in 2000, IBM retained its No. 1 position in the server
industry based on worldwide revenue (see Table 1). Dell Computer and Sun
Microsystems experienced the strongest growth among the top-tier vendors with
growth rates of 73 percent and 43 percent, respectively.
Table 1
Worldwide Server Vendor Revenue Estimates for 2000 (Millions of Dollars)
| Company |
2000
Revenue |
2000 Market
Share (%) |
1999
Revenue |
1999 Market
Share (%) |
Growth (%) |
| IBM |
13,736 |
25.5 |
13,728 |
28.3 |
0.1 |
| Sun |
9,711 |
18.1 |
6,793 |
14.0 |
43.0 |
| Compaq |
8,599 |
16.0 |
6,767 |
14.0 |
27.1 |
| Hewlett-Packard |
7,157 |
13.3 |
6,975 |
14.4 |
2.6 |
| Dell |
3,436 |
6.4 |
1,988 |
4.1 |
72.9 |
| Others |
11,122 |
20.7 |
12,198 |
25.2 |
-8.8 |
| Total Market |
53,761 |
100.0 |
48,448 |
100.0 |
11.0 |
Source: Gartner Dataquest (March 2001)
In the U.S. server market, revenue reached $20.3 billion in 2000, an increase of
15 percent over 1999 (see Table 2). Sun was the No. 1 vendor in the United
States based on revenue with 24 percent market share. IBM slipped to the No. 2
position with 23 percent market share, followed by Compaq at No. 3 with 19
percent of U.S. server revenue.
Table 2
U.S. Server Vendor Revenue Estimates for 2000 (Millions of Dollars)
| Company |
2000
Revenue |
2000 Market
Share (%) |
1999
Revenue |
1999 Market
Share (%) |
Growth (%) |
| Sun |
4,785 |
23.5 |
3,304 |
18.7 |
44.8 |
| IBM |
4,692 |
23.1 |
5,205 |
29.4 |
-10.0 |
| Compaq |
3,894 |
19.2 |
2,829 |
16.0 |
37.6 |
| Dell |
2,351 |
11.6 |
1,306 |
7.4 |
80.0 |
| Hewlett-Packard |
2,196 |
10.8 |
2,497 |
14.1 |
-12.0 |
| Others |
2,413 |
11.9 |
2,563 |
14.5 |
-5.8 |
| Total Market |
20,330 |
100.0 |
17,704 |
100.0 |
14.8 |
Source: Gartner Dataquest (March 2001)
"Demand for servers is still high, especially in e-business, front-end Web, Web
application and database servers, which will continue in 2001," said Shahin
Naftchi, senior analyst covering servers and workstations for Gartner
Dataquest's Computing Platform Worldwide group.
Additional information on the server industry is available in the Gartner
Dataquest Alert, "Fourth Quarter and Year 2000 Final Estimates for Servers."
This Alert provides vendor market share results for both worldwide and U.S.
server industry on a revenue and shipment basis. To purchase this Alert or
subscribe to Gartner Dataquest's Servers Quarterly Statistics program, please
call 800-419-DATA, or 408-468-8009.
Gartner Dataquest is the recognized leader in providing the high-technology and
financial communities with market intelligence for the semiconductor, computer
systems and peripherals, communications, document management, software, and
services sectors of the global information technology industry.
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