Growth in the worldwide server market suffered in the third quarter due to financial troubles in the Asian economy.
A new report from IDC showed server revenues for the third quarter declined three per cent from the same period last year.
However, the research company said that despite the decline in revenue, server unit shipments remained strong with a year on year growth of 15 per cent.
According to IDC, pricing pressure, particularly in the low end of the market and in Asian economies, accounts for the disparity in the revenue and shipment growth.
Jim Williamson, senior analyst with IDC?s quarterly server market programme, commented: ?Major market turmoil in Japan, coupled with the worldwide price pressure, have substantially contained revenue growth. However, vendors with well tuned strategies for exploiting emerging server market trends such as Dell, and Sun, continue to deliver positive results.?
He added that pockets of strong growth continue to thrive, particularly in the US market.
Seperated out, Western Europe showed a strong market growth, with a 23 per cent surge in server revenue from last year, but Japan continued to falter with revenue sinking by 38 per cent.
Of the vendors, Sun continued what IDC described as a ?meteoric? rise, with a 39 per cent growth in server revenue.
Compaq became the third largest server vendor in this quarter, largely due to the acquisition of Digital. IDC said the acquisition helped to offset what was otherwise a bad quarter for the company?s server business.
Dell, while not enjoying the 300 per cent plus annual growth rates it had in 1996 and early 1997, still managed a 62 per cent year over year growth in server revenues and a 76 per cent growth in unit shipments.
IDC said the sales of servers running Windows NT grew by 16 per cent over the same period in 1997, down from growth of 25 per cent to 76 per cent in previous quarters. In addition, despite NT?s inroads into the server market, the sale of servers running varieties of the UNIX operating system grew at a strong 7 per cent over last year.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago