About
Subscribe

Linux 'powerhouse` of server growth

Cape Town, 31 May 2004

Linux servers have proved to be the "growth powerhouse" in the server market during the past quarter, as two international research firms, Gartner and the International Corporation (IDC), say sales have almost touched $1 billion (R6.5 billion).

More than $900 million (R5.85 billion) worth of Linux servers were sold during the last three months, according to IDC`s latest Worldwide Quarterly Server Tracker.

IDC says this is the second consecutive quarter when sales of Linux servers have topped that level and are now nearing the $1 billion (R6.5 billion) level.

Compared with 1Q03, Linux servers showed 56.9% growth, while unit shipments grew 46.4%.

IDC notes that Linux server revenue and unit shipments have grown at double-digit rates since the second half of 2002.

In its latest report, Gartner says Linux continued to be the growth powerhouse in the operating systems server market, with a revenue increase of 57.3% in the first quarter of 2004.

"Despite past concerns about Linux scalability and its suitability for enterprise applications, the data shows that the market continues to invest strongly in Linux servers," says Jean S Bozman, research VP, Global Enterprise Server Solutions at IDC.

"Linux servers are playing increasingly important roles in IT customers` computing infrastructure. They are taking on enterprise workloads, now that more ISV applications are available for both technical and commercial workloads on the Linux server platform," he says.

Gartner says the worldwide server market was worth about $11.8 billion in the first quarter of 2004, a 9.3% increase from the first quarter of 2003.

According to IDC`s Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market grew at 7.3% year-over-year to $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.

"Much of the revenue growth in the server industry was driven by the low-end products, such as servers costing less than $5 000," says Michael McLaughlin, principal analyst for Gartner. "On a regional basis, the US continued to be the largest server market, as it accounted for 37.8% of global server revenue."

Gartner says IBM extended its lead based on server revenue, as its market share increased to 30.7% in the first quarter of 2004. Dell experienced the strongest growth rate among top-tier vendors, as its revenue increased 24.8% from the first quarter of 2003.

Windows continued to be the OS server market leader in revenue with 35.1% market share. On a shipment basis, Windows accounted for 69.4% of the OS server market, Gartner says.

Share