February 27, 2004

Worldwide Server Market Posted Double Digits Revenue Growth in the Fourth Quarter of 2003

According to IDC's Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market grew at
11.4% to $13.7 billion in the fourth quarter of 2003, marking the third consecutive quarter of positive growth. Worldwide server unit shipments grew
dramatically by 22%, compared with the year-ago period. A favorable exchange rate was one factor leading to the very strong quarterly results, but the
market grew 3% without the effects of the currency exchange rate.

Revenue growth was shown in all major categories of servers: volume servers (servers priced less than $25,000), midrange enterprise servers ($25,000
to $499,999) and high-end enterprise servers ($500,000 or more)--the first time that that has happened since the economic downturn began in 2001. Once
again, volume servers led the market in showing revenue and unit growth--demonstrating the profound impact volume servers are having on the worldwide
server marketplace.

"Volume server capabilities are driving into several tiers of the computing infrastructure," said Vernon Turner, group vice president of IDC's
worldwide server group. "It shows that high-end server technology has cascaded to this market, and that infrastructure is being augmented by industry
standards and IT is reaping the benefits."
Overall Server Market Standings more

Link: idc.com


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