Connections +
News

Worldwide server market growth reflects improved climate for IT spending, says IDC

According to IDC's Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market grew at 7.3%...


May 31, 2004  


Print this page

According to IDC’s Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market grew at 7.3% year-over-year to US$11.5 billion in the first quarter of 2004, marking the fourth consecutive quarter of positive overall growth.

It was also the second consecutive quarter in which all major categories of the worldwide server market grew when compared to the same period in the previous year.

The breadth of growth shows that demand for server systems is on the rise, although seasonal variations caused first-quarter revenues to be less than fourth-quarter revenues.

“IT spending is clearly trending upward and IT organizations are beginning to rebuild their computing infrastructure,” said Vernon Turner, group vice president of Global Enterprise Server Solutions at IDC.

“Following nearly three years of slowed spending during the economic downturn, we see that server systems are a priority in these rebuilding efforts.”

There was strong year-over-year unit shipment growth of 22.4%. IBM Corp. held on to its number one position with a 29.7% market share in factory revenue.

In terms of unit shipments, HP Corp. was the number one vendor worldwide. It also recorded a 26.9% share of factory revenue, slightly behind IBM, while Sun Microsystems Inc. and Dell Computer Corp. were in a statistical tie for third place, IDC said.