INDUSTRY

ARMONK, NY -- A report from independent analyst Gartner Dataquest indicates that IBM gained more than nine points of share in the hotly-contested U.S. server market in 2Q01, while Sun Microsystems and Dell reportedly both lost share. IBM led the computer industry in U.S. server market share for the quarter. According to Gartner, IBM's share of the U.S. server market in the second quarter increased to 28.6 percent from 19.1 percent in the second quarter of 2000. By contrast, Sun's share decreased to 20.7 percent from 22.4 percent; and Dell's share decreased to 10.5 percent from 11.3 percent. In sales of servers running Windows, Gartner reported that IBM's share jumped to 12 percent from 5.5 percent in the year-ago quarter, while Compaq plummeted to 25.6 percent from 41.7 percent. In UNIX servers, IBM's share of sales increased to 21.2 percent from 15.6 percent, while Sun declined to 43.9 percent from 47.4 percent. Gartner includes Linux revenue in its UNIX numbers. IBM attributes its success to a number of key factors: IBM eServer -- Introduced in October 2000, IBM eServer is a new generation of servers featuring mainframe-class reliability and scalability, broad support of open standards for the development of new applications, and capacity on demand for managing the unprecedented demands of e-business. The IBM eServer line provides flexibility to help customers build and manage e-business infrastructures affordably and effectively. Technology leadership -- First to include technical innovations like microchips powered by IBM Copper and Silicon-on-insulator technology, IBM eServer UNIX servers rank number one in important performance benchmarks. IBM eServer Intel-based servers incorporate features designed to provide mainframe-like reliability and availability. Strategic alliance strategy -- Since IBM established a policy of partnering with leading software applications vendors like Siebel and SAP, these vendors often lead in sales engagements with IBM servers and software. For more information visit www.ibm.com