New price war looming in the Unix server market


3 April 2003 The continued pressure on IT budgets, coupled with the growing power and sophistication of Intel-based systems, has led to a fresh round of price cuts in the Unix server market.

IBM cut the prices of its systems in January, Sun Microsystems followed suit in March and now Hewlett-Packard has announced price cuts of up to 20% on a number of its midrange Unix servers.

The cuts, which came into force in the US and Europe on 1 April, apply to the company’s eight-processor rp4705 and rp7410 systems, and to the 16-processor rp8400.

According to market analyst IDC, HP remains the leader in the midrange Unix server market (systems costing between $100,000 and $1 million), earning revenues of $3 billion from the sector in 2002. IBM was in second place with revenues of $2 billion, while Sun was in third place with revenues of $1.6 billion. However, HP’s dominance has come under increasing pressure in recent months, particularly from IBM.

In the coming months, analysts also expect to see increasingly fierce competition in the high-Unix server market, as all of the three leading vendors unveil new machines.

Avatar photo

Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

Related Topics