Oz server market grinds almost to stop

Growth in Australia's server market nearly slipped into the negative with a mere 0.1 per cent increase registeredyear on year of overall servers shipped locally, according to Gartner's Dataquest.

In a repeat of the last quarter's performance, flat Australian market conditions indicate a continuing loweringlevel of business confidence as server purchasing decisions are still being delayed, the analyst said.

The total server market for Australia and New Zealand grew by 2 per cent for the quarter. Most of the growth camefrom the uptake of servers in New Zealand, where the year-on-year total server units increased 20 per cent from justover 2000 units a year ago to almost 2500 (2444) during the second quarter.

Matthew Boon, Gartner's Dataquest regional server program manager, said, "Market conditions continue to be tough outthere; we saw it in the PC space and now we see it in the corporate infrastructure area of the server market."

Last quarter, Dataquest said server sales in the Asia-Pacific region would take off once the anticipated recoverysigns in the US market appeared.

However, Boon said, "Unfortunately the US market continues to flounder and business confidence continues to waneacross the region, even some of the region's growth power houses have experienced a significant slowing."

Vendors have had a competitive slog with some shifts in the top five in market share within Australia. A poorperformance from Hewlett-Packard's Intel-based server division saw Sun snatch HP's position, according to Gartner.

The top three are Compaq, Dell and IBM respectively.

"This quarter has seen Compaq re-establish itself as the volume leader in Australia, while Dell's continued push hasseen it slip into number two," Boon said.

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