The Asia-Pacific (excluding Japan) server market grew by 27 per cent in the first half of 2000 compared with the previous year to reach a sales value of $US2.9 billion, according to IDC.
Telecommunication expansion, Internet infrastructure expansion and electronic commerce investments were primarily responsible for spearheading the server market growth, the research company said in a report issued Thursday.
The region's sustained economic recovery also helped sales, IDC said. The entry-level (under $100,000) server market showed strong revenue growth of 41 per cent in the period, with demand coming from government-led infrastructure projects, the telecommunications sector and Internet startups.
But the high-end (over $1 million) server market contracted 4 per cent following a surge of sales in this market in 1999 as part of year-2000 remediation efforts, IDC said.
The server market offers good margins for vendors, and the already strong competition will get fiercer later this year when 64-bit Intel Itanium-based servers arrive on the market, according to Rajnish Arora, senior analyst for the server market at IDC Asia-Pacific.
South Korea was the largest single market for servers, with a 30 per cent share, followed by China (21.3 per cent) and Australia (13.2 per cent). The South Korean market grew 92 per cent over the previous year, driven by a booming economy, rapid expansion of the Internet market, and healthy government investments in IT, according to IDC.