Dataquest Server Revenue Stats Paint a Rosy Picture for Big Blue

Gartner Dataquest’s final 2001 server revenue survey results released this week revealed 2001 was a year that market share was gained not by increasing sales the most but rather by decreasing sales the least.

Across the board, Gartner Dataquest’s data shows server revenue was on the decline. Total U.S. server revenue decreased 23.2 percent, from just under $21.8 billion in 2000 to $16.7 billion in 2001. Unix-based server revenue decreased 25.2 percent, from $10.3 billion to $7.7 billion. And Intel-based server revenue decreased 27.6 percent, from almost $9.3 billion to $6.7 billion.

Gartner Dataquest’s final 2001 server revenue survey results released this week revealed 2001 was a year that market share was gained not by increasing sales the most but rather by decreasing sales the least.

In U.S. server sales, Gartner Dataquest’s findings reveal IBM was the only vendor to increase revenue year-over-year, growing it from slightly less than $4.7 billion in 2000 to $4.9 billion in 2001. Big Blue’s corresponding market share of U.S. server sales increased 7.8 percent to 29.3 percent. The data also indicates that Sun Microsystems, Compaq Computer, Dell Computer, and Hewlett-Packard, all experienced a decline in revenue and a corresponding decline in market share.

IBM came out on top in the Intel and Unix server spaces as well, growing 1.6 percent and 3.1 percent, respectively. In both segments, Big Blue’s actual revenue decreased: Its Intel-based server revenue shrunk from $997 million to $831 million, and its Unix-based server revenue decreased from $1.8 billion to $1.6 billion.

Compaq, the leading vendor in the Intel server space, according to Gartner Dataquest’s data, saw its share of the Intel server market erode from 28.5 percent to 26.4 percent, bringing it almost neck to neck with Dell. Dell owned 26.2 percent of the market in 2001. Revenue for Compaq and Dell declined 33.1 percent and 25.5 percent, respectively.

In the Unix arena, Sun remained the top player. It captured a 46.4 percent market share (an increase of 0.1 percent) despite a 25 percent decline in sales. IBM trailed in second place with 20.9 percent of the market — a 3.1 percent year-over-year increase in market share despite a 12.4 percent decrease in revenue.

IBM attributes much of its strong showing to its eServer line, particularly the p690 “Regatta” system, as well as to its “vigorous push” into the Intel-based server market with a server lineup designed to “leverage mainframe-inspired technologies to enhance performance and reliability.”

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