Sun Melts Competitors in Server Market

9/3/2002 - According to IDC's worldwide quarterly server tracker for 2Q02, Sun Microsystems bolstered its total market position in both revenue and shipments compared to last quarter at the expense of newly merged competitor HP/Compaq. Sun also maintains its commanding lead in the UNIX® market with over 78,000 units shipped and $1.750 billion in revenue.

Across the total server market, Sun increased its revenue by 11% and 13% in shipments quarter-over-quarter. Sun attributes much of its 13% increase in total server shipment marketshare to its high-end systems which grew by a phenomenal 74%, representing the strongest growth of any competitor in any segment of the server market. In addition, Sun grew unit shipments by 14% in the entry-level server market - growing faster than HPQ, Dell and IBM - proving that Sun's UltraSPARC® and SolarisTM-based product lines continue to be viable alternatives to the Wintel server market.

"The numbers speak for themselves - from workstations to entry-level servers to high-end mainframe class systems - customers are choosing Sun," said Shahin Khan, Chief Competitive Officer, Sun Microsystems. "In the entry space, our 64-bit architecture is already gaining marketshare against the competition and the addition of the 32-bit Sun LX50 running both Linux and Solaris will enable us to serve a new incremental market opportunity."

One-in-Two UNIX Servers Shipped is a Sun Server
In the UNIX market, Sun is again number one with 39% marketshare in revenue and 50% in shipments. Sun holds its leadership position in every region around the world and ships more UNIX systems than HP/Compaq, IBM and Dell combined. In terms of revenue, Sun's marketshare increased by 4% year-over-year and 6% sequentially.

In the Entry-level UNIX market, Sun showed a 24% revenue growth quarter-over-quarter and 6% year-over-year while HP/Compaq saw a double digit decline and IBM experienced modest growth. Sun's growth in this space is led by the Sun Fire V880 which holds nearly 50% of the 8-way server market in terms of shipments and 29% in revenue. The Sun FireTM V880 helped Sun triple its unit shipments and double its revenue for 8-way systems, year-over-year.

In the high-end UNIX space, Sun continues to lead with 43% revenue marketshare which represents a 5 point marketshare increase year-over-year. This lead also extends to shipments where Sun's high-end systems have nearly 60% marketshare - an 18 point increase in marketshare from 1Q02.

About Sun Microsystems (
Since its inception in 1982, a singular vision — "The Network Is The ComputerTM" — has propelled Sun Microsystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 170 countries.

Sun, Sun Microsystems, the Sun logo, Sun Fire, Solaris, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. All SPARC trademarks are used under license and are trademarks of SPARC International, Inc. in the United States and other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc. UNIX is a registered trademark in the United States and other countries, exclusively licensed through X/Open Company, Ltd.

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