Linux soars in entry-level server market

Linux emerged as the fastest growing entry-level server operating system during the fourth quarter of 1999, with Compaq taking the lead in system sales.

Shipments of Linux servers soared to 72,422 units, a 166 per cent increase on 1998 shipments, according to researcher IDC.

Hoang Nguyen, senior analyst at IDC, said: "Even though Linux represents a small portion - about six per cent - of the entry-level server market in unit shipments, it will become an important area of growth within the server market as more and more branded vendors come out with Linux servers."

However, Gartner analyst George Weiss sounded a cautious note, warning that the rise of Linux would cut the number of Unix variants down to only four, and force out some middle-tier Unix vendors. "The Unix flavours likely to survive will include Solaris, HP UX and Monterey" he said. According to Gartner, Linux will represent 20 per cent of Unix spend by 2005.

An IDC survey of 200 Linux server users indicated that many employed their machines mainly for hosting web applications, proxy and caching services, and e-mail. About 71 per cent said their Linux servers had an impressive 99.99 per cent uptime.

Michelle Bailey, research manager for IDC's commercial systems and server programme, said that more than 40 per cent of all expenditure on Linux servers went on internet-related applications. "Linux servers are now embedded in the internet infrastructure and are strong competition for Windows NT and Unix entry servers," she said.

Speciality Linux vendors, such as VA Linux and Penguin Computing, did not make the top five list of biggest-selling Linux vendors. Instead Compaq, with a 25 per cent market share, sold 18,000 of the total 72,422 units, generating revenues of $84m (£52.5m). IBM was second with 7001 units, turning over $33m (£20.6m), while Hewlett-Packard, with seven per cent of the sector, finished in third place. The company shipped 5429 units, and made $23m in Linux-related sales.

See also:

Is HP basing its Unix future on Linux?

Hewlett Packard announced last week that it had adopted Linux as its third strategic platform alongside HP/UX and Windows 2000. But the move raises question marks over the future of its own Unix variant.  24 Aug 2000

Linux applications market stuck, says IDC

The Linux market is trapped in a chicken (or perhaps penguin) and egg situation as vendors wait for users to show serious interest in Linux-based enterprise applications, and users wait for vendors to produce the goods.  14 Jul 2000

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