Worldwide Server Revenue Reaches $54 Billion

By Amy Newman (Send Email)
Posted Mar 7, 2001


The worldwide server industry had revenue of $53.8 billion in 2000, an increase of 11 percent over 1999 revenue, according to a report issued today by Dataquest, Inc. (ITB), a unit of Gartner, Inc. (IT).

The server industry benefited from a strong fourth quarter, with revenue reaching $14.8 billion, an 18 percent increase over the fourth quarter of 1999.

The worldwide server industry had revenue of $53.8 billion in 2000, an increase of 11 percent over 1999 revenue, according to a report issued today by Dataquest, Inc. (ITB), a unit of Gartner, Inc. (IT).

"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.

"Demand for servers is still high, especially in e-business, front-end Web, Web application, and database servers, which will continue in 2001," Gartner Dataquest senior analyst Shahin Naftchi added.

As noted in the following table, IBM retained its position as the highest grossing vendor in the server industry based on worldwide revenue. Dell Computer and Sun Microsystems experienced the strongest growth among the top-tier vendors, with growth rates of 73 percent and 43 percent, respectively.

Worldwide Server Vendor Revenue Estimates for 2000
(in Millions of Dollars)
Company
2000
1999
Growth
(%)
Revenue
Market Share
(%)
Revenue
Market Share
(%)
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
HP 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)

Revenue for the U.S. server market also increased, reaching $20.3 billion in 2000. This was an increase of 15 percent over 1999 revenue. As illustrated in the following table, 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.

U.S. Server Vendor Revenue Estimates for 2000
(in Millions of Dollars)
Company
2000
1999
Growth
(%)
Revenue
Market Share
(%)
Revenue
Market Share
(%)
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
HP 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)

More details about vendor market share results for both the worldwide and U.S. server industry on a revenue and shipment basis can be found in the Gartner Dataquest Alert, "Fourth Quarter and Year 2000 Final Estimates for Servers." For more information about purchasing this Alert, call 800 419 DATA, or +1 408 468 8009.


Related Stories:
Server Shipments for 2000 Surpass Those in 1999
Latest IDC Survey Reveals a Still-Growing Server Market
Server Channel Expected to Grow, but With a Changed Business Model


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