IDC SAYS SUN IS UNIX SERVER MARKET LEADER

December 15, 2000

COMMERCIAL NEWS

Palo Alto, CALIF. — Sun Microsystems, Inc. continued its lead over HP, IBM and Compaq in the UNIX server market. Sun led the total UNIX server market in both shipments and revenue – and for the second quarter in a row, Sun shipped more servers than HP, IBM and Compaq COMBINED.

According to International Data Corporation’s (IDC) Q3CY00 Server Tracker Report, the tally shows that Sun registered 48 percent market share of the worldwide UNIX server shipments – shipping more than three times as many servers as HP, nearly four times as many as Compaq and almost five times that of IBM. Sun has been named the No. 1 vendor in total UNIX server shipments for a record 14th consecutive quarter. Sun also continued its leadership in worldwide UNIX server revenue with 39 percent marketshare – HP, IBM and Compaq posted 23 percent, 16 percent and nine percent respectively.

The total UNIX server market recorded substantial growth in both revenue and units – 20 percent. This is a testament to Sun’s success in the market as Sun posted stellar growth year over year – beating all vendors with 100 percent growth in shipments and 63 percent growth in revenue.

Sun also posted outstanding growth in the total server market – 100 percent in units and 63 percent in revenue. Sun overtook HP and Compaq, moving from fourth to second overall, in revenue in the total market.

“The IDC report shows that the Sun Enterprise and Netra server lines are clear winners with customers – no recounts necessary and no dimpled, pregnant or hanging chads,” said Shahin Khan, vice president of marketing for Sun’s systems products. “The UNIX server market is growing and Sun is the driving force. The competitors that did show growth posted numbers against an easy compare – a down quarter they attributed to “Y2K”. This data is evidence of the continued success of Sun’s focus – SPARC and Solaris. Customers vote with their dollars and they continue to choose Sun.”

Entry-level Category

— First place in worldwide UNIX server market with $1,179M in revenue (44 percent market share); first place in worldwide UNIX server market with 88,108 units shipped (49 percent market share). In units, HP claimed 13 percent, Compaq 13 percent and IBM 10 percent

— In the worldwide total server market, Sun posted 109 percent quarter-to-quarter growth in units shipped; Dell grew 31 percent, IBM grew 30 percent, Compaq 15 percent, HP managed 4 percent growth. In revenue, Sun jumped to second on 43 percent growth.

Midrange Category

— First place in worldwide UNIX server market with 8,110 units shipped (43 percent market share); HP shipped 5,182 units (27 percent share), IBM shipped 1,927 (10 percent share), Compaq 1,676 (nine percent share).

— Neck and neck with HP in worldwide UNIX server revenue — Sun had $902M in revenue (27 percent share), while HP had $942M (29 percent share); IBM posted $739M (23 percent share) and Compaq $291M (nine percent share).

— First place in worldwide total server market with 8,110 units shipped (35 percent market share)

High-end Category

— First place in worldwide UNIX server market with $750M in revenue (56 percent market share); first place in worldwide UNIX server market with 723 units shipped (63 percent market share) IBM came in with $190M in revenue on 80 units, HP had $147 revenue, 158 units.

— First place in worldwide total server market in units shipped (723), 36 percent market share.

The Netra server family builds on the reliability and scalablity Sun systems are known for – adding physical and computing features needed to operate in extreme environmental conditions. The carrier-grade line of systems is popular in the telco market. In addition, the small profile and rackability of many of the systems, make them ideal for service providers. Sun can be found in more than 170 countries and on the World Wide Web at http://www.sun.com.

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