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Thu 9 May 2002 04:00 AM

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Worldwide server shipments on the rise

Gartner Dataquest reports that worldwide server shipments for the first quarter of 2002 have increased by 0.6% compared to the fourth quarter of last year.

Gartner Dataquest has released its preliminary statistics for this year’s first quarter worldwide server shipments. With a grand total of 1.09 million units shipped thus far, the market has experienced a 0.6% increase from last year’s fourth quarter results. The analyst house reports that the tough market conditions felt in the market during 2001 are continuing in 2002. However, it adds that any indication of market recovery will not be seen until either the second or third quarter of 2002.“The slow economy has strongly affected the IT industry and slowed spending on servers, especially high-end models. The weak global business environment has strongly affected customers' buying behaviour,” says the analyst house’s report.“Gartner expects the market will show signs of recovery but only after at least two quarters of improvement in the economy generally, especially for high-end servers,” it adds.Intel continues to dominate server sales as it accounted for nearly 90% of shipments. In addition, the vendor managed to out performer the stuttering market by achieving an overall growth rate of 2.2% worldwide.Gartner recommends that end users should take advantage of the flat market to negotiate better deals with server vendors.

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