IBM Computer, Laptops and Servers

Laptop Battery PRAGUE, October 22, 2004 Shipments of commercial systems and servers in Central and Eastern Europe rose by more than 17% in volume in 2003 and are expected to rise by nearly 20% this year. According to a new IDC study, a market shift towards x86 servers resulted in a value rise of just 1.1% in 2003, though this figure is expected to rebound to over 15% in 2004.
Although Central and Eastern Europe remains one of the most heterogeneous areas of development in the commercial systems and servers market, a number of factors will maintain the current level of growth. Recent EU accession for eight countries in Central and Eastern Europe, and membership talks for Bulgaria, Romania, and Croatia will likely result in improving economies and modernization programs. Moreover, governments and private companies need to bring their systems up to international standards to comply with regulations and be competitive. Also, NATO membership for some of the countries and deregulation and privatization across the region will lead to major IT investments.

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Thinkpad "The operative word in many cases is competitiveness," said Darian Bird, senior analyst, IDC CEMA's Systems Group. "From governments and their state-owned industries all the way down to the smaller privately owned businesses, everyone will need to be more efficient and ready to interact and do business in an international environment. This means hardware upgrades, especially among small and medium-sized organizations, many of which are still using only the most basic of networks."

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Microsoft Because Russia has the largest population, it was the largest country market in the region last year and will remain the largest for the foreseeable future. It was followed by Poland and then the Czech Republic. Together, these three countries accounted for almost 64% of total volume in 2003. The fastest growing markets were Bulgaria, Croatia, and Romania. "The growth trends reflect the relative technological and economic development across the region," said Bird. "Those countries bordering traditional Western European countries started their economic and political reforms a lot earlier than countries further east and south. Nevertheless, countries like Romania and Croatia are catching up fast, and will be investing heavily in hardware as prices come down."

With its new destinations of Baia Mare, Sochi and Nizhniy Novgorod (as from April 08), Bourgas, Tallin (Codeshare) and Astana, the Austrian Airlines Group has opened up important key parts of Central and Eastern Europe, European market leader in the region. Austrian Airline's Eastern European route network covers a total of 48 destinations in 24 different countries.

Laptop Computers HP retained its position as the dominant commercial systems and server vendor in CEE in 2003 and will likely remain the top vendor this year. IBM came in at second and Dell ranked third. The Russian vendors Aquarius and Kraftway took fourth and fifth, their rankings in the region facilitated by the size of their local market. Altogether, these five vendors accounted for more than 58% of server and system volume in 2003. The market was nonetheless highly competitive, with the top 20 vendors representing just under three-quarters of total volume. "The shift to x86 servers favors local assemblers, as they can generally offer lower prices and are more familiar with local needs than international players," said Bird. "But the international vendors aren't going anywhere soon. Those with a solid local presence and reliable channel partners will stay firmly in the game."

Laptop Computer In 2003, the server market in CEE was characterized by strong demand for volume servers. According to IDC, volume servers accounted for 97.6% of total shipments last year. Falling prices and increased demand from small and medium-sized enterprises helped drive the segment, which expanded by 18.9% in volume. While midrange servers only constituted 2.3% of unit shipments last year, they represented 29.7% of market value. High-end servers accounted for the rest.

"Since bobPay is built on the bidorbuy backbone, a RedHat Linux Apache Web server, an application server using a Java Server Pages (JSP) Engine, the entire system is wholly scalable. As bidorbuy's traffic and the South African online payment market grow, bobPay will allow us to expand along with these developments. Additionally, as bidorbuy owns all of the bobPay source code, we are able to customise the solution to meet conditions specific to bidorbuy and the South African market, " adds Higgins.

Desktop Computer Windows-based systems represented more than 80% of the servers shipped across the region last year. This stems from the fact that over the last two years, x86 server hardware and related management tools have improved dramatically, making them more competitive with many low-end RISC systems and thus appealing to IT managers needing to stretch budgets. While the Unix and Novell market contracted, the Linux segment expanded a robust 72.2% in volume in 2003.

Notebooks IDC's Central and Eastern European Commercial Systems and Servers 20042008 Forecast and 2003 Vendor Shares (IDC #EC02L, September 2004) provides detailed analysis and forecasts for 11 evolving markets (Bulgaria, Croatia, Czech Republic, Hungary, Slovakia, Poland, Russia, Slovenia, Ukraine, Romania, and Rest of Eastern Europe) and covers commercial systems and technical workstations.

Lenovo For more information, please contact Tatiana Hinova at +420 221 423 140 or at thinova@idc.com.

Hard Drive Contact
For more information, contact:

Travelstar Mark Yates
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+420 221 423 140

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