Sun overtook both IBM and Hewlett-Packard (HP) to move into the top
spots in total server shipments (including systems based on UNIX,
Microsoft Windows NT, and other operating systems) for the high-end and
mid-range markets in the third quarter of 1999, according to a leading
industry analyst firm. The Q3CY99 server market report, issued by
International Data Corporation (IDC), also shows that Sun continued to
gain momentum in the growing UNIX server market. Sun has maintained its
number one position in total UNIX server shipments for the 10th quarter
in a row. The company increased its market share in UNIX server
shipments and factory revenues across the board -- in entry-level,
mid-range, and high-end server categories.
Sun systems have been tremendously popular in the traditional
mission-critical data centers, as well as with the fast-growing service
provider, e-commerce, and dot-com companies that need to offer high
quality service levels at low service costs while managing unpredictable
user loads in fast-changing application environments. Sun's Enterprise
servers, with Solaris, StorEdge systems, and middleware offerings excel
in all these environments.
"Unlike our competitors, we haven't had to reannounce our commitment
to the UNIX platform -- Sun has never taken its eye off the ball," said
John Shoemaker, vice president and general manager of enterprise
desktops and servers for Sun. "While our competitors have re-awakened
to the capabilities of UNIX systems and must manage incompatible and
complex CPU, OS, or architectural transitions, Sun's SPARC/Solaris
products offer a unique blend of scalability and binary compatibility.
The latest market share data validate Sun's focused and seamless
strategy. Customers are not choosing just any UNIX servers.
Increasingly, they're placing their confidence and trust in Solaris and
Sun Casts Shadow Over IBM and HP High-End
The IDC report states that Sun, boasting 76 percent growth in market
share, moved past IBM and clinched the top position in total high-end
server shipments (systems priced on average above $1 million), with the
Sun Enterprise 10000 (a.k.a. Starfire) server leading the charge. Sun
also achieved 18 percent growth in factory revenues in the high-end
server market, while IBM showed a 34 percent decline.
Sun trounced HP to capture the number one spot in UNIX high-end server
shipments, showing 76 percent growth in market share. HP suffered a 74
percent decline in market share of UNIX high-end server shipments. Sun
also maintained its first place ranking in factory revenues in high-end
UNIX servers with 39 percent market share. Sun has held the top
position in UNIX high-end server shipments and factory revenues for the
past four quarters and six quarters, respectively.
Sun Seizes Lead in Midrange Server Shipments
In third quarter 1999, Sun surpassed both IBM and HP in total mid-range
server shipments (systems priced from $100,000 to $1,000,000), racking
up 22 percent growth while both HP and IBM showed negative growth -- 37
percent and 45 percent, respectively. Sun also had higher growth than
IBM and HP in total mid-range server factory revenues -- Sun boasted a
10 percent growth rate versus IBM's negative 43 percent and HP's
negative 10 percent. Sun's gains are even more intriguing in light of
new systems on the market from both IBM and HP.
Sun knocked HP out of first place in mid-range UNIX server shipments,
locking up 40 percent of the worldwide market share. Sun showed a 22
percent growth in the category while HP showed a 39 percent decline.
Sun also showed an impressive 10 percent growth in UNIX mid-range server
factory revenues. All other vendors showed declines in growth -- IBM
had a negative 36 percent growth and HP had a negative 8 percent growth.
Sun Unrivaled in Entry UNIX Server Market
In the entry-level segment (systems under $100,000) of the total server
market, Sun grew 33 percent in total entry server shipments and 24
percent in factory revenues. Sun was once again the champion in
shipments and factory revenues in the UNIX entry-level server market --
for the 10th consecutive quarter, Sun has been the customer favorite
(units shipped) and has been the leader in factory revenues for seven
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