Server sales still flat post Olympics

Server sales still flat post Olympics

What does the introduction of the GST, the declining dollar and the Olympic Games have in common? Well, according to a recent report, all have been responsible for flattening growth in Intel server sales for the third Quarter 2000.

This was the message given by a Gartner Dataquest report, which stated Australia's Q3 server market showed a level growth rate compared to the same period last year. In contrast, the Asia-Pacific region showed a growth rate for Intel server shipments that exceeded 30 per cent year-on-year.

Top performers for the quarter included Compaq with 33.9 per cent market share while Dell pipped IBM for second position with over 3000 servers shipped during the quarter. Sun's unit sales, on the other hand, fell sharply, which Gartner attributes "to lowering corporate confidence". Intel server shipments into the region topped 137,000 units for the quarter.

Gartner's Dataquest analysts claim IBM's supply chain constraints were eased, allowing the company to clear a backlog carried over from Q2, while Dell's aggressive marketing campaign appears to have paid off for its lower-end server sales. One vendor to watch out for, according to the report, is Chinese manufacturer Legend - which holds around 5 per cent of the market.

Despite the flat growth, the outlook looks promising for Australia, claims Matthew Boon, senior industry analyst for Gartner's Dataquest. "Despite considerable obstacles for growth in Q3, the fourth quarter appears to have kicked off with a greater sense of momentum", Boon says.

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