South African computer systems and server shipments surged by 34.2% in 2003 to more than 24 000 units from the previous year, the latest BMI-TechKnowledge report says.
However, revenue grew at a more modest 6.9% to $360 million largely due to the strength of the rand. The rand`s average rate against the dollar last year was pegged at R7.53 to the dollar, compared with R10.53 previously.
The report was compiled by BMI-TechKnowldege and is marketed overseas through its affiliation with international research group International Data Corporation.
Laurika M"oller, BMI-TechKnowledge analyst and the report`s author, says the rand`s rebound against the dollar and other international currencies was the major factor that drove the market.
According to the report, Microsoft operating systems took 77% of the market share for operating systems in this sector. Linux saw its market share surge by 350% to 14% of the total market.
Volume servers accounted for more than 95% of shipments in SA in 2003. According to the study, both the volume and high-end server segments expanded last year, though the volume segment represented just 36% of total value, approximately the same as the high-end. By contrast, unit growth in the midrange was flat.
"This was largely due to the migration towards x86 machines," says M"oller. "This reflects higher demand for low-end servers among SMBs [small and medium businesses] but also among corporations, some of which are deploying more low-end machines due to falling prices and increased computing power."
A handful of vendors dominated the South African systems and server market last year. While four vendors accounted for nearly 82% of shipment volume, three managed to capture more than 84% of shipment value. HP took first place in both volume and value, with Dell taking second in volume and IBM taking second in value.
M"oller says the market remains very competitive.
"There were more than 15 active players on the South African server market last year. As the domestic economy continues to improve, we expect the SMB sector will up its investment in servers, though they will be looking for high functionality at low prices, which favours vendors with a strong portfolio of low-end machines," she says.
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