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http://www.insanely-great.com/news.php?id=731

XServe: Not On The Radar Yet, But Server Market Growing
By Remy Davison, Insanely Great Mac
July 30th 2002

Server market stabilizes, grows, but full recovery still some way off.

Apple''s XServe has not registered a blip on global server sales charts, but the 
global outlook is good: server sales in the US have recorded their second consecutive 
month of growth.

According to a story at MacWorld UK, Dataquest statistics (part of the Gartner Group) 
show US server market growth, although demand remains weak in the rest of the world.

Server shipments grew by 0.5% for Q2 2002 on a year-by-year basis, with a total of 
1.08 million units. US shipments demonstrated the most exponential growith, where 
units moved were up 9.9% on the same quarter for 2001.

The statistics reveal that the HP-Compaq merger moved the firm into first place with 
30.5% market share worldwide (26.8% US). HP-Compaq were folowed by Dell (24%), IBM 
(14.5%), Sun (6.5%), NEC (2.2%) and Gateway (1.1%). 

Apple previously sold its standard G4 towers as servers, equipped with OS X Server. 
However, the release of the rack-mounted XServe at substantially lower prices than the 
previous market leader, Dell, gives Apple an entree into the lucrative enterprise 
market. Recently, Apple rose to #6 in the US desktop market and #9 worldwide. This was 
partly attributable to the increase in Apple''s market share, as well as the HP-Compaq 
merger.

Analysis:  The real bait that Apple has to switch servers to XServe is its unlimited 
client license, which can typically cost users of other brands thousands of dollars. 
The other catch-all is OS X''s Unix foundations. The MHz numbers won''t wow the IS 
set, but the price might. But the real challenge will be for Apple marketing to make 
XServe even a blip on a glazed-eyes sys admin visage.


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