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IBM Growth Outpaces Sun in Midrange Unix Server Market

BMC Software to Provide Jiro Based Management of Storedge T3 Arrays

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IBM IBM Growth Outpaces Sun in Midrange Unix Server Market

SOMERS, N.Y., December 13, 2000 - IBM announced today that it outgrew Sun Microsystems in midrange UNIX server revenue growth and share point gain, significantly outpacing the year-to-year growth rate of its UNIX rival, according to a report released today by International Data Corporation (IDC). IBM's growth was fueled by the introduction of the M80 and other powerful new midrange servers with copper microprocessors into the heart of its UNIX product line.

IDC's Q3CY00 server market report shows IBM's share of midrange UNIX revenue rose 71% year-to-year compared with a gain of 40% for Sun Microsystems over the same period. In the same timeframe, IBM's point share of the UNIX market segment rose eight points compared to just four points for Sun. The IDC defines midrange servers as systems costing between $100,000 and $1 million. ...IBM profile

Editor's comments:- you won't be surprised to know that Sun interprets the same figures differently as demonstrated in this press release:-

"PALO ALTO, CA - December 13, 2000 - Sun Microsystems, Inc continued its commanding 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."

Part of the difference lies in how the 2 companies interpret various niches. So for example Sun usually claims to be the #1 supplier of Unix workstations, whereas Dell Computer is the leading supplier of (all) workstations.

Despite what you may think about these types of market statistics, they can be useful. Sun is seriously under attack in the server market from IBM in the mid range and Dell at the lower end. The technical gap between these products has closed but there remains a credibility gap which will sustain Sun for many years. The danger for Sun is that if senior management's attention is diluted away from their core business (servers) into wannabe markets like storage and software, they will lose the single minded focus which got them where they are today.

It's difficult to be #1 at everything. Being #2 isn't so bad either, but we're going to see a new type of Sun in the future which is more interested in defending the status quo. The problem stems from the fact that Sun's entry level desktop strategy failed, and history shows that new markets grow from the low end upwards.
Sun Microsystems

BMC Software
Sun and BMC Software to Provide Jiro Technology-Based Management of Sun Storedge T3 Arrays

PALO ALTO, Calif. and HOUSTON - December 11, 2000 - Sun Microsystems, Inc., and BMC Software, Inc. today announced collaboration on the development of a BMC Software Knowledge Module bridge that will interface with the Sun StorEdge[tm] T3 array and other Sun StorEdge solutions. This new solution will be based on Jiro[tm] technology, an important enabler of next generation storage networks, and will allow customers to gain the interoperability benefits of the technology without having to invest in numerous management interfaces. This announcement makes BMC Software one of the first application management software companies to support Jiro technology.

BMC Software's Jiro technology development will enable its PATROL(r) application management software to view any Jiro technology-enabled storage product on the network. This announcement further supports BMC Software's recently announced Application-Centric Storage Management[tm] approach, which has received broad industry support because of its unique ability to intelligently manage storage by adding application-level intelligence to heterogeneous storage environments.

Jiro technology is an open, freely available set of APIs based on the Java[tm] 2 platform that provides developers with an infrastructure for building interoperable end-to-end storage management solutions for heterogeneous environments. BMC Software knowledge modules discover, capture, store and report physical attribute and event information for storage systems and storage network interconnect devices including disks, bridges, hubs, routers and HBAs. This information is then combined with the application intelligence available through BMC Software's PATROL solution to associate storage events with business processes. ...BMC Software profile, ...Sun Microsystems profile

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