According to International Data Corporation (IDC), Compaq was the fastest-growing UNIX vendor in the mid-range server market in Western Europe for the second consecutive quarter in quarter four, 1999. Compaq`s year-on-year customer revenue increased by 57.7 percent in the sector. In addition, Compaq`s share of UNIX market`s total customer revenue grew by 3.3 percentage points to 8.7 percent. Compaq`s unit sales of Tru64 UNIX running on the Alpha platform rose by 57.2 percent.
Meaning that TRU64 UNIX accounted for 10.7 percent of all UNIX shipments in the quarter, an increase of 2.9 percent compared to quarter four 1998. In the same period, Compaq increased its share of the total $2.5 billion mid-range server market, including the non-UNIX sector, by 1.9 percentage points to 9.9 percent. The UNIX market`s customer revenue fell by 1.2 percent in the quarter compared to the same period of the previous year, says IDC. Furthermore, Compaq`s UNIX business far out-performed the market for the second quarter running in 1999.
Today, IDC puts Compaq`s total Western European mid-range server customer sales for Q4 1999 at $245 million from sales of the RISC, Reduced Instruction Set Computer, platforms. IDC also reports that mid-range server market leader IBM`s revenues declined by 46 percent, resulting in a 10 percentage points market share loss. Indeed, AS/400 and S/390`s share of the non-UNIX segment fell sharply, pulling the overall mid-range server market down considerably.
Moreover, Compaq`s success is set for a boost in May with the launch of a new generation of high-end AlphaServers. This move will reinforce Compaq`s existing strengths in the market and provide a technological edge in the high performance UNIX segment.
Tom Yeates, Director of High Performance Servers, Compaq Computer Europe, Middle East and Africa (EMEA), said: "Compaq`s sustained momentum in the low- to mid-range of the UNIX market will be accelerated late in quarter two by a new generation of High Performance Alpha Servers. Our past and future success is being driven by a focused market strategy, excellent execution, backed by world-beating technology. We are supporting our drive for UNIX market share with an additional $100m investment in marketing to expand our sales force, enhance their sales skills and enhance Compaq`s marketing campaigns."
Yeates stated that Compaq intends to become market leader in specific segments, particularly telecommunications, eCommerce & Internet, high performance technical computing (HPTC) and enterprise applications markets.
"With Tru64 UNIX and the AlphaServer platform, Compaq is reaping the benefit of its investments in and long-term commitment to the UNIX market. Compaq grew unit shipments in a competitive market place that was weakened by large accounts stalling new server purchases because of Y2K, " he said.
IDC spokesman, Peter Lemon, research manager, European Commercial Systems and Servers, said: "Compaq`s sustained market share growth over two quarters demonstrates that the company has successfully focused on its core Tru64 UNIX offering running on the AlphaServer platform. Compaq`s shipment and revenue growth have continued to outpace the market average. The company`s expected launch in May of a new generation of high performance servers should reinforce this improvement and give Compaq strength across the complete UNIX market range.
This makes the Compaq, Samsung and API decision to jointly invest $500 million this year in Alpha technology look timely."
Indeed, the French Atomic Energy Commission (CEA) has just ordered the yet-to-be-launched high performance AlphaServer systems running Compaq Tru64 UNIX. This AlphaServer cluster will be seven times faster than any supercomputer operating in Europe today. The CEA picked Compaq`s Alpha technology because of its raw power, upgradability and manageability. The contract follows other significant wins for existing Alpha technology that have propelled Compaq`s UNIX business to new heights.
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Compaq Computer Corporation
Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. Compaq designs, develops, manufactures, and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs for the NonStopTM Internet world. Compaq products and services are sold in more than 200 countries directly to businesses, through a network of authorized Compaq marketing partners.
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