Volume 3, Number 14 -- April 13, 2006

JPR Says Workstation Market Rebounded in 2005

Published: April 13, 2006

by Timothy Prickett Morgan

Market researcher Jon Peddie Research says that 2005 was a pretty good year for the high-end workstation market, and as in past years, this was mostly due to the continuing expansion of Windows and Linux workstations using Xeon and Opteron processors.

According to JPR's latest annual workstation report, the workstation market saw shipments grow by 22.6 percent to 2.08 million units worldwide in 2005, which was almost three times the growth rate from 2003 to 2004, when just under 1.7 million units were shipped and revenues actually declined by 5.9 percent to $4.5 billion in sales. In 2005, sales were up by 18.4 percent, to $5.33 billion.

JPR reckons that Dell has the dominant market share position in the workstation market, but its share is dropping in direct proportion to the advance of the Opteron in the workstation space--an Opteron chip that Dell refuses to support. JPR says that Dell had a 46 percent share of the workstation space in the first quarter, but its share had dropped to 39 percent in the final quarter of the year; HP had a 27 percent share for all of 2005, and is said to be closing the gap with Dell very quickly. The other top vendors are Lenovo, IBM, Fujitsu-Siemens, and Sun Microsystems--all of whom now have Opteron workstations. Oops.

Still, the Opteron chip only accounted for 2.6 percent of shipments in 2005, according to JPR, or about 54,080 units. But the Opteron workstation market is on fire. "If you extrapolate Opteron's nearly 350 percent growth rate, then AMD is in the teens in a couple of years and putting a big dent in Intel's share," explains Alex Herrera, JPR's senior analyst and the author of the Workstation Report. "But in 2006, with the new Woodcrest processor and Glidewell platform promising dramatically improved system bandwidth, Intel should dramatically close the performance gap with Opteron, especially in dual-socket applications."

The closely related professional graphics card market was also a hot one in 2005, at least for a few players. The market consumed 2.78 million units, up 16.8 percent, and sales grew by 6.8 percent to $908.6 million. In 2004, high-end graphics card shipments were up by 14.5 percent, but sales actually declined because of intense price competition, dropping by 8.3 percent to $850.8 million. Last year, nVidia captured 70 percent of graphics card shipments, but a stunning 79 percent of sales, while ATI grew its share of shipments to 23 percent; Matrox got 5 percent of shipments, and 3DLabs got only 2 percent. This low number is the main reasons 3DLabs got out of the workstation graphics business earlier this year, says JPR.

JPR says that most of the revenue and shipment growth for workstation sales in 2005 was due to the advance of dual-core X64 machines with very fast graphics, which not only attracted more customers but also boosted average selling prices. RISC/Unix workstations took it on the chin; of course, as they have since Windows NT was first put on a workstation 10 years ago. JPR says that the mobile workstation market is one of the hot spots, with 72 percent revenue growth.

Sponsored By

Free Unix!
It Is, With FreeBSD

FreeBSD is an advanced OS for X86 and X64, Alpha/AXP, IA-64, PC-98, and Sparc architectures. Its features include advanced networking, security, and compatibility, and it's an ideal Internet or Intranet server. Best of all, FreeBSD is free!

FreeBSD needs your help.
If you can make improvements, submit your changes to the FreeBSD Project.

Email bod@FreeBSDFoundation.org or
visit FreeBSD.org for more information.

Editor: Timothy Prickett Morgan
Contributing Editors: Dan Burger, Joe Hertvik,
Shannon O'Donnell, Timothy Prickett Morgan
Publisher and Advertising Director: Jenny Thomas
Advertising Sales Representative: Kim Reed
Contact the Editors: To contact anyone on the IT Jungle Team
Go to our contacts page and send us a message.

Sponsored Links

MKS:  Meet your compliance goals with iSeries and cross-platform application lifecycle management
OpenSolaris:  If you want OpenSolaris to thrive, get involved
COMMON:  Join us at the Fall 2006 conference, September 17-21, in Miami Beach, Florida


Subscription Information:
You can unsubscribe, change your email address, or sign up for any of IT Jungle's free e-newsletters through our Web site at http://www.itjungle.com/sub/subscribe.html.

Copyright © 1996-2008 Guild Companies, Inc. All Rights Reserved.
Guild Companies, Inc., 50 Park Terrace East, Suite 8F, New York, NY 10034

Privacy Statement