Asia-Pacific server market healthy: IDC

The Asia-Pacific server market, excluding Japan, experienced a 32 percent year-on-year growth rate for the fourth quarter of 2000, according to preliminary results for that quarter released on Monday by International Data Corp. (IDC).

IDC's research found server market revenues during the fourth quarter to have reached US$1.79 billion for Asia-Pacific, with overall market revenue finishing at almost US$6.3 billion for the year.

The second half of 2000 saw more rapid growth than the first, accounting for almost 54 percent of market revenue for the year, according to Avneesh Saxena, associate director of server research at IDC. Saxena pointed to this finding as proof that the server market remained healthy in the region, despite the decline of the dot-com sector.

Growth in the market was supported by renewed investment made by traditional segments of industry into such areas as business intelligence applications, server consolidation and Internet expansion, according to the report. Internet data centers maintained strong investments on all servers, especially standard Intel-architecture servers (SIAS), which contributed the most revenue among all server types, the report noted.

Saxena expected more good news to come.

"We expect a greater demand for servers from the existing and new users due to falling prices, greater competition, newer technology and shorter life cycles," he said in the report.

Among the vendors, IBM topped the overall server market by revenue with a 34 percent share in the quarter, with its AS/400, RS/6000 and SIAS platforms especially performing well, according to the report, which named finance as the main source of IBM server business in the quarter.

At No. 2, Compaq reportedly did brisk trade with its SIAS systems while its Alpha business improved too. The telecom sector was among the stronger segments for Compaq in Q4 2000, according to IDC. Hewlett-Packard, came in third, Sun fourth, with Dell fifth.

Among countries, China led the region with a 76 percent surge in revenue in Q4 2000 over Q4 1999. The Korean market slowed down to 22 percent annual growth in Q4 2000 and slipped to the second position. However the Korean market remained No. 1 in terms of overall revenue for 2000, the report noted. Australia came in at No. 3, Taiwan fourth and Hong Kong, with 42 percent annual growth for the market, topped Singapore by a very thin margin for fifth place.

Finance, telecommunications, distribution and the small and medium-sized business (SMB) segments were the main drivers of growth in Hong Kong for Q4 2000, according to IDC's research.

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