Gartner Says Asia/Pacific Server Revenue Increased 7 percent in the First Quarter of 2003
Announcement posted by Gartner 27 May 2003
Australia, Korea, and India Show Positive Growth While Singapore and Hong Kong Server Revenue Declines
Asia/Pacific server revenue totaled $1.12 billion in the first quarter of 2003, a 7 percent increase from the same period last year, according to Gartner, Inc. (NYSE: IT and ITB).
Gartner analysts said it was encouraging to see the Asia/Pacific server market experience growth again, after the past few quarters of declining revenue, however the analysts said there are still concerns for future growth. The impact of SARS in region will influence some segments of the industry.
"A number of key markets, including Singapore, Hong Kong, Taiwan and China face challenging business conditions in the second quarter of 2003, thus we should expect that the second quarter could negate much of the first quarter gains," said Matthew Boon, vice president for Gartners for Hardware and Systems research. "Many large organizations, particularly in the tourism, hospitality and services industries are looking closely at delaying capital expenditure programs."
China continued to be the No. 1 country for server revenue in Asia/Pacific with 32 percent market share, experiencing 8 percent rise in revenue in the first quarter of 2003 when compared to the first quarter of 2002. The major consumption areas were telecom and education while hardware purchases in government and finance remained stable compared to last year.
The Indian server market revenue grew 27 percent in the first quarter of 2003 when compared to the first quarter of 2002. "Increased uptake of Intel based servers and end-fiscal buying by government and corporate contributed to this growth," said Vinod Nair, industry analyst for Hardware Platforms, Gartner India. "Part of the high growth is also because of lower than average performance for the same quarter last year. Continuing the previous trend, finance and banking, telecom and government were the main buyers."
Singapore server market revenue fell 5 percent indicating that the economy was not quite out of the economic doldrums. For the first quarter of 2003, much of the server spending was derived from government and education sectors.
Australia, one of the other key mature markets in Asia Pacific, managed to show a 10 percent increase. "Australia has remained fairly resilient to major declines as the global IT sector has decreased the past couple of years, largely due to a very strong presence and focus by all the major vendors," Boon said. "This continued in the first quarter of 2003 led by strong growth from Hewlett-Packard, while Sun also grew albeit at a lesser rate."
From a vendor point of view, the first quarter of 2003 saw some interesting competitive dynamics unfurl.
With the exception of Sun Microsystems, all the major multinational server vendors maintained or grew overall server market share. Sun lost 1 percent market share in Asia/Pacific, however, Sun did perform particularly well in the full year 2002, so a correction was not unexpected.
Dell was one of the star performers lifting market share from 3.3 percent to 4.7 percent because of its growth in China. "Dells investment in the China market in terms of resources and commitment continues to bear fruit, and the Dell model has struck a chord in the Chinese server marketplace," Boon said.
Detailed statistics are available to clients of Gartner's Servers Quarterly Statistics program. This program offer a comprehensive, global market information service that analyzes and documents the server and workstation industries. This report, when available, can be purchased on the Web at www.gartner.com.
About Gartner
Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients leverage technology to achieve business success. Gartners businesses are Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Conn., and has more than 3,800 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. Revenue for calendar year 2002 totaled $888 million. For more information, visit www.gartner.com.
Gartner analysts said it was encouraging to see the Asia/Pacific server market experience growth again, after the past few quarters of declining revenue, however the analysts said there are still concerns for future growth. The impact of SARS in region will influence some segments of the industry.
"A number of key markets, including Singapore, Hong Kong, Taiwan and China face challenging business conditions in the second quarter of 2003, thus we should expect that the second quarter could negate much of the first quarter gains," said Matthew Boon, vice president for Gartners for Hardware and Systems research. "Many large organizations, particularly in the tourism, hospitality and services industries are looking closely at delaying capital expenditure programs."
China continued to be the No. 1 country for server revenue in Asia/Pacific with 32 percent market share, experiencing 8 percent rise in revenue in the first quarter of 2003 when compared to the first quarter of 2002. The major consumption areas were telecom and education while hardware purchases in government and finance remained stable compared to last year.
The Indian server market revenue grew 27 percent in the first quarter of 2003 when compared to the first quarter of 2002. "Increased uptake of Intel based servers and end-fiscal buying by government and corporate contributed to this growth," said Vinod Nair, industry analyst for Hardware Platforms, Gartner India. "Part of the high growth is also because of lower than average performance for the same quarter last year. Continuing the previous trend, finance and banking, telecom and government were the main buyers."
Singapore server market revenue fell 5 percent indicating that the economy was not quite out of the economic doldrums. For the first quarter of 2003, much of the server spending was derived from government and education sectors.
Australia, one of the other key mature markets in Asia Pacific, managed to show a 10 percent increase. "Australia has remained fairly resilient to major declines as the global IT sector has decreased the past couple of years, largely due to a very strong presence and focus by all the major vendors," Boon said. "This continued in the first quarter of 2003 led by strong growth from Hewlett-Packard, while Sun also grew albeit at a lesser rate."
From a vendor point of view, the first quarter of 2003 saw some interesting competitive dynamics unfurl.
With the exception of Sun Microsystems, all the major multinational server vendors maintained or grew overall server market share. Sun lost 1 percent market share in Asia/Pacific, however, Sun did perform particularly well in the full year 2002, so a correction was not unexpected.
Dell was one of the star performers lifting market share from 3.3 percent to 4.7 percent because of its growth in China. "Dells investment in the China market in terms of resources and commitment continues to bear fruit, and the Dell model has struck a chord in the Chinese server marketplace," Boon said.
Detailed statistics are available to clients of Gartner's Servers Quarterly Statistics program. This program offer a comprehensive, global market information service that analyzes and documents the server and workstation industries. This report, when available, can be purchased on the Web at www.gartner.com.
About Gartner
Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients leverage technology to achieve business success. Gartners businesses are Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Conn., and has more than 3,800 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. Revenue for calendar year 2002 totaled $888 million. For more information, visit www.gartner.com.