Sun Is World's Fastest Growing Server Company, Says IDC Tally

By Jeffrey Meltzer (Send Email)
Posted Mar 14, 2001

Sun Microsystems, Inc. (Nasdaq: SUNW), announced today that in calendar year 2000 it was the fastest growing server vendor in the industry, according to the final year-end worldwide data from industry analyst firm International Data Corporation (IDC). Moving up from No. 4 just a year ago, Sun now stands at No. 2 worldwide, just behind IBM in total server market revenue.

In addition, Sun continued its reign as the undisputed leader of the UNIX. server market during a year in which HP and IBM rolled out new systems in an attempt to unseat Sun's industry-leading servers. Sun's tremendous growth in 2000 widened its lead over HP, IBM and Compaq in this space, making it the number one vendor in UNIX server shipments for the past 15 quarters. Sun Microsystems announced that in calendar year 2000 it was the fastest growing server vendor in the industry, according to the final year-end worldwide data from industry analyst firm International Data Corporation (IDC).

Astounding Growth in Total Server Market

IDC's report shows that in the total server market (which includes systems based on UNIX, Microsoft Windows NT, MVS mainframe and all other operating systems), Sun posted 70 percent year-over-year growth in shipments and 42 percent growth year-over-year in revenue -- outpacing HP, IBM, Compaq and Dell in both categories. In revenue, Sun blew past HP and Compaq, added four share points -- and made significant gains on IBM, who lost a share point with just 2 percent revenue growth over the same period.

These outstanding gains skyrocketed Sun to the number one server vendor in revenue in the U.S. for 2000.

Sun outpaced IBM in two key server segments: entry-level and high-end systems. In the entry server market, year-over-year, Sun posted gains of 80 percent in shipments and 44 percent in revenue. In contrast, IBM saw only an 18 percent increment over the same period in shipments and suffered an 8 percent decline in revenue. In the most recent quarter, CYQ4, Sun's revenue grew 86 percent year-over-year, gaining 7 share points, while IBM managed only 11 percent growth with no market share gain.

In the high-end server market, year-over-year, Sun grew revenue at 84 percent and shipments at 14 percent, compared with IBM's 8 percent loss in revenue and only 4 percent growth in shipments. Sun led the high-end category in shipments with 28 percent market share.

''The IDC report shows that Sun's surge in the market was the reason behind much of the growth in servers worldwide last year. It's simple, Sun is in the driver's seat, growing faster than IBM and overtaking them in key markets, such as the U.S.,'' said Shahin Khan, vice president of marketing for Sun's systems products. ''Over the year, IBM and HP have thrown their best at us and we continued to make gains. Customers are voting with their dollars.''

Sun Continues Commanding Lead in UNIX Servers

In 2000, Sun also widened its lead over competitors in the UNIX server market. Sun shipped more UNIX servers than IBM, HP and Compaq combined to lead the market in both shipments and revenue. Sun ended the year with an astounding 44 percent share in shipments and 35 percent share in revenue. Sun has been the No. 1 vendor in total UNIX server shipments for nearly four years.

In the most recent quarter, CYQ4, Sun grew a phenomenal 72 percent year-over-year in total shipments to gain 15 share points and close the quarter with 43 percent share. In the same period, IBM declined 10 percent to lose four share points and end with 15 percent of the market.

In the entry-level UNIX server category, Sun posted a staggering 80 percent growth year-over-year to take first place in shipments with 315,180 (44 percent share). In units, Compaq, HP and IBM all suffered share point losses. In revenue, Sun came in first with ,008M (35 percent market share) on 44 percent growth. In contrast, IBM fell 28 percent year-over-year and dropped five share points to end the year with nine percent market share, Compaq declined seven percent to lose two share points for 10 percent of the market.

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