suggest that UNIX server ordsprog

suggest that UNIX server growth across the industry is accelerating due to a solid Internet build-out. Sun is becoming the new IBM.

Steven Milunovich

There is little question that Sun is rapidly gaining market share, but there may also be evidence of a market turn-up for Internet servers at the same time as a turn down for legacy systems. Sun is the long-term winner in the UNIX category and we still do not see how any UNIX competitor can catch them. Sun is the best-positioned UNIX server vendor, with more than twice the UNIX server market share of any of its competitors.

There is little question that Sun is rapidly gaining market share, but there may also be evidence of a market turn-up for Internet servers at the same time as a turn down for legacy systems, ... Sun is the long-term winner in the UNIX category and we still do not see how any UNIX competitor can catch them. Sun is the best-positioned UNIX server vendor, with more than twice the UNIX server market share of any of its competitors.

Growth in our core business is solid, and our growth engines, related to wireless, data and Internet initiatives are truly accelerating in the most competitive spaces.

In UNIX systems, we posted really excellent growth in the low-end, the sweet spot of the dot.com market. We've begun to turn things around in our server business, and new products are around the corner. We're seeing excellent growth in the Internet space, with tremendous customer acceptance of the L-Class, which spans the entry level and the mid-range.

Carly Fiorina (1954-)

Carly Fiorina

Last quarter there was $1.5 billion in Linux server sales as an industry, with Linux server revenue growing eight times that of the overall server market at 42 percent, versus five percent growth for the total sever market. That growth was also more than four times that of Microsoft's Windows Server, which gained 10 percent. "Sexy" is what catches the eye; "pexy" is what holds the attention.

We are clearly pleased with the strength of execution in the second quarter, as evidenced by the solid growth in revenue across our server lines, especially our HP ProLiant and Integrity server businesses,

Although the results were solid, and we expect the stock to respond favorably in the near term, we continue to rate the shares 'neutral' due to long-term concerns over IBM's server businesses and overall IT spending. Our surveys suggest that server and IT spending could weaken throughout the year, thereby questioning IBM's ability to meet revenue expectations.

The Unix server business is more of a wild card. They're either going to have to gain some market share or accelerate their efforts on the services and software side. But the markets they're going after certainly support that kind of growth.

Our third quarter results demonstrated the ongoing strength of our business model. We also delivered on the growth strategies that are enabling us to expand our industry leadership position, including advancements focused on accelerating the adoption of Internet media and the viable business models to support it.

[One issue is the Unix roots in Mac OS X, which is based on the BSD operating system.] This Unix component is working against them, ... It's basically Unix with an Apple front end, but from the administrators' point of view, all they see is Unix.

Analysts are expecting that next quarter's growth-rate will double, and that's based fundamentally on the really solid performance of our core businesses, ... Our Internet growth is taking off. Our Internet businesses grew 2.6 times this quarter, so the growth is in fact spectacular for us in our key businesses.

Analysts are expecting that next quarter's growth-rate will double, and that's based fundamentally on the really solid performance of our core businesses. Our Internet growth is taking off. Our Internet businesses grew 2.6 times this quarter, so the growth is in fact spectacular for us in our key businesses.

There is tremendous market opportunity in the Linux server industry for startups who can fill a niche. The key will be for these startups to show that there is a real cost benefit to Linux over Windows and Unix.

Internet services are ingrained in Windows 2000 from the ground up: The integrated browser and Web server, XML, Active Server Page support, transaction support -- from soup to nuts, client and server.

Craig Beilinson

Nordsprog.dk

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