Both the worldwide server and workstation markets grew during the third quarter of 2000, but some leading players saw their market share dwindle.
One million server units were shipped during the quarter as the market grew by 16.5 per cent during the past 12 months, according to figures from researcher Dataquest. Growth in the workstation sector was a modest 3.9 per cent to 381,835 units.
The top three server vendors, Compaq, IBM and Dell, accounted for more than 58 per cent of the total market. Compaq extended its lead as its share topped 27 per cent, followed by IBM with 16.4 per cent and Dell with 14.9 per cent.
Dell's 41.4 per cent shipment growth helped it to narrow the gap between IBM, which saw shipments fall by 18.6 per cent from the same period last year.
Dataquest analyst Jeffrey Hewitt attributed the narrowed gap to IBM's supply chain constraints. "Dell benefited from an aggressive marketing strategy on operating systems and advantageous price/performance ratios on lower-end systems," he added.
Preliminary Worldwide Server Unit Shipment Estimates for 3Q00 (Units)
| Company | 3Q00Shipments | 3Q00 MarketShare (%) | 3Q99Shipments | 3Q99 MarketShare (%) | Growth (%) |
| Compaq | 275,777 | 27.3 | 229,865 | 26.5 | 20.0 |
| IBM | 164,995 | 16.4 | 160,836 | 18.6 | 2.6 |
| Dell | 150,414 | 14.9 | 106,614 | 12.3 | 41.1 |
| Hewlett Packard | 110,090 | 10.9 | 110,801 | 12.8 | -0.6 |
| Sun Microsystems | 72,006 | 7.1 | 41,765 | 4.8 | 72.4 |
| Others | 235,560 | 23.3 | 216,011 | 24.9 | 9.1 |
| Total Market | 1,008,842 | 100.0 | 865,892 | 100.0 | 16.5 |
Source: Gartner Dataquest (November 2000)
The fourth slot was taken by Hewlett Packard (HP), which dropped its server market share to 10.9 per cent, while rival Sun Microsystems jumped 72.4 per cent to grab a 7.1 per cent market.
Although some workstation vendors experienced minor shortages in graphics cards during the quarter, Dataquest said the industry is on track to grow between eight and nine per cent from 1999 to 2000.
Dell toppled HP from the number one workstation slot as it enjoyed the strongest growth at 41.4 per cent to command a 23.6 per cent share. Sun followed with a 21.3 per cent share, growing by 9.4 per cent year over year.
Third is HP, whose share slid by 4.5 per cent to 17.8 per cent. Compaq, with a 13.5 per cent share, and IBM, with a 10 per cent share, rounded out the top five vendors.