The server market grew 19 per cent quarter on quarter according to latest Q2 figures from Gartner.
Compaq leads the market, with solid growth over the quarter of 44 per cent. Hewlett-Packard also experienced growth in servers, however IBM was plagued with the logistical problems of component supply.
Senior analyst Matthew Boon believes the figures are the result of increasing confidence in the market, as businesses realised Y2K and GST introduction would not have a major detrimental impact.
"Unique business factors such as Y2K fallout, GST uncertainty and tightening fiscal policy affected business in quarter one strongly," Boon said. "This led to a number of vendors, particularly within this volume end of the server market struggle with predictable forecasting patterns.
Compaq managed to reach top spot through accurate forecasting, he said.
"Quarter two saw market demand for servers fuelled by delayed purchase decisions from quarter one. Compaq had the volumes it needed to meet this demand."