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Midrange server market drops ten per cent in 1999

By Dominic Maher

Published: 23 February 2000 17:43 GMT

The worldwide midrange server market saw a ten per cent drop in revenues in 1999, according to research house IDC.

The report, '1999 Midrange Server Year in Review: It's not just about Y2K' claims revenues have plummeted from $17.6m in 1998 to $15.9m in 1999.

IDC say the market will gather momentum in 2000 but pricing pressure, product transitions and declining sales by second-tier vendors, all hit sales in 1999.

The report also said sales were damaged by the millennium bug.

The research house blames aging products from the top two vendors IBM and HP, as the reason they respectively experienced a 12 and five per cent drop in revenues. But Sun Microsystems and Compaq moved in the opposite direction. Sun's revenues rose 24 per cent and Compaq moved up 18 per cent.

IDC classifies midrange servers as those priced from $100,000 to $1m.

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