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IDC Expects Strong Shipment Growth, Flat Revenues in Server OS Market

Server operating environment shipments will increase at a compound annual growth rate (CAGR) of almost 17 percent from 1999 to 2004. But revenues in the same market will remain almost flat with a CAGR of just over 1 percent, says a new report from market analysts IDC.

According to the new report from IDC (www.idc.com), the big news in the server operating environment market is the growth of Linux shipments. In 1999, Linux overtook NetWare as the number two server operating environment in terms of new license shipments, and Linux shipment growth should outpace all other server operating environments through 2004. IDC forecasts Linux server operating environment shipments will increase at a CAGR of more than 28 percent, from 1.3 million in 1999 to 4.7 million in 2004. Linux revenues will also grow faster than the rest of the market, increasing at a CAGR of over 23 percent. However, even with this rapid growth, Linux server operating environment revenues will barely exceed $85 million in 2004, and total Linux server shipments will remain second to Microsoft's Windows Server family.

The report, Server Operating Environments Market Forecast and Analysis, 2000-2004, analyzes the market for server operating environments, including Unix systems, Microsoft's Windows NT Server and Windows 2000, Novell NetWare, and Linux. The report discusses the trends and issues affecting vendors and forecasts revenues and shipments through 2004. - Isaac Slepner

About the Author

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

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