Linux and x86-based servers lead strong market growth

By Matt Whipp

Posted on 27 Feb 2004 at 12:27

Cheap chips, platforms and dollars have boosted server sales and shipments according to figures from research group IDC.

For the fourth quarter of 2003, IDC reckons worldwide revenues topped $13.7bn - up 11.4 per cent sequentially - and shipments leapt 22 per cent.

The weak dollar was a factor in the success of this, the third consecutive quarter of growth, but the march was led by increased enthusiasm for sub-$25,000 volume servers. This was shown also in strong growth for x86-based servers taking advantage of the likes of AMD's Opteron 64bit processors - with revenues up 15 per cent and shipments rising 23 per cent to 1.4mn.

'The x86 server market is growing in its importance,' said Mark Melenovsky, Program Director in IDC's server research group. 'The new announcements regarding Intel's 64-bit extensions to x86 architecture, and AMD's traction in its first year of Opteron shipments show that this segment is continuing to evolve. IDC expects 2004 to be a tipping point for enterprise x86-architecture server adoption.'

The GNU/Linux platform has heard the call of the volume market and generated nearly $1bn for the quarter - a massive 63.1 per cent growth year on year - and shipments leapt 52.5 per cent using the same comparison. But it looks as if Linux is finding a home beyond the volume market, according to Jean S. Bozman, Research Vice President in IDC's worldwide server group.

'Linux server growth continued to accelerate,' he said, 'demonstrating that Linux servers are taking on important roles in IT customers' computing infrastructure. What began with edge and Web-centric workloads is branching out to include HPC and commercial workloads.'

Even so, all server markets experienced growth - the first time for three years. Additionally, all platforms were on the up. Beyond the Linux figures, Windows grew revenues 16.1 per cent year on year and shipments by 23.3 per cent. Even Unix turned the corner with its first year on year growth for 11 quarters, up 0.8 per cent with $5.1bn in revenues and a 12.1 per cent rise in shipments.

The vendor charts by revenue play out as follows: IBM holds the top spot for both Q4 and 2003, averaging a third of market with $5,168mn and $14,439mn respectively. HP charts a number two, followed by Sun, Dell, Fujitsu and then the 'others'. IDC did mark out Sun as having successfully focussed on driving shipments in the Unix market with an 18.2 per cent growth for Q4 compared with the corresponding quarter in 2002.