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PC Server Growth Slows in Second Quarter 1998

The worldwide PC server market showed sluggish growth in the second quarter of 1998, according to a study by International Data Corp. (IDC, Framingham, Mass.). Shipments on a worldwide basis dropped to just over 487,800, which translates into negative 1 percent sequential growth.

IDC’s bulletin "2Q98 PC Server Results: Economic Crisis in Japan Dampens Worldwide Results," tracks market share in the worldwide PC Server market and forecasts server shipments through the end of this century.

"Though the economic turmoil in Japan played a major role in the worldwide PC server shipment decline, the overall down turn is due to a number of factors including inventory issues in the United States, modest growth in Europe, and a slowdown in high-end, PC-server sales due to anticipated Xeon servers," says IDC analyst Amir Ahari.

Despite the worldwide market reduction, the top five server vendors maintained their market share positions in Q2 ’98 for shipments. Compaq Computer Corp. maintained its lead with 27.7 percent of the market, while Hewlett-Packard Co. and IBM Corp. defended their positions with 15.2 percent and 12.2 percent, respectively. The most notable growth spurt occurred at Dell Computer Corp.; the company broke into double-digit’s, for a total of 11.4 percent of the worldwide market. – Thomas Sullivan, Staff Reporter/Reviews Editor

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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