IDC Forecasts Growth For Linux In Russia

September 1, 2000

NEWS BRIEFS

Moscow, RUSSIA — Linux is poised to take a sizable chunk of the Russian server market over the next five years according to new research from IDC. From a small base in 1999, Linux is forecast to be the fastest-growing server operating system platform in Russia, and IDC predicts Linux-based servers will account for 17% of total server unit shipments in Russia by 2004.

IDC’s research of the Russian server market found that vendors enjoyed mixed fortunes in 1999. While shipments of Windows NT and OS/390-based systems boomed, the Unix server market declined.

“We recorded the biggest growth rates at the two extremes of the server market,” said Robert Farish, research manager at IDC Russia. “PC server shipments were rebounding after a weak year in 1998 while shipments of OS/390- based systems were the highest that we have recorded since the mid-nineties.”

But revenues from Unix servers declined in 1999 as delayed fallout from the 1998 financial crisis hit shipments of midrange servers. “The projects market was weak in 1999, and this was not a year for large customers to initiate major server investments,” Farish said. “It’s also clear that a lot of available budget was re-directed into Y2K projects.”

* The overall server market in Russia grew 61% in 1999. Shipments increased from 16,520 units in 1998 to 26,560 units in 1999.

* Linux accounted for under 2% of total server shipments in 1999, but its share is forecast to increase to 17% by 2004.

* The overall leader of the Russian systems and servers market in 1999 was Compaq (in units) and IBM (in value).

* Shipments of Intel-based PC servers grew 68% in 1999. This rate of growth, however, reflects the equally steep decline that occurred in 1998 as a result of the financial crisis in Russia.

* IDC recorded no growth in the Russian Unix server market in 1999, with market value declining 28%.

The Computer Systems and Server Market in Russia, 1999-2004 (IDC ##EG07G) provides detailed data, analysis, conclusions, and forecasts for all segments of the multiuser systems market in Russia. It additionally provides IDC’s estimates of the size of the technical workstation market in Russia. This study also presents IDC’s view on the structure of this market in Russia and how this structure is evolving due to developments in the industry and from changes in the local environment.

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 600 analysts in 43 countries worldwide.

IDC’s customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com . IDC is a division of IDG, the world’s leading IT media, research and exposition company.

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