Neoware, which sells entirely through the channel, has leapfrogged Hewlett Packard (HP) to take second place in the thin client market.
Sales in western Europe for 2002 reached $196m (£124.4m) with Wyse leading the way with a 24.4 per cent share of the market. Neoware took 18.4 per cent, and HP 17.3 per cent.
Neoware increased its shipments by 157 per cent in 2002 compared to the previous year.
Bob O'Donnell, research director at IDC, suggested that the vendor is profiting from IBM's withdrawal from this market.
"IBM discontinued its thin client product in January 2002 and named Neoware as its preferred replacement," he said. "This gave it a big boost and there is an opportunity for resellers because Neoware only sells through the channel."
According to IDC research, worldwide thin client shipments grew by 18.5 per cent in 2002 compared to the previous year.
O'Donnell indicated that the reasons for the growth include businesses replacing old terminals with thin clients, and vertical markets such as finance, retail and education seeing the advantages of the technology.
But the analyst warned that HP is staging a comeback in the market and will make up lost ground.
"HP is coming on strong after being in the doldrums for some time and it will give Neoware a run for its money," he said.
Peter Bolton, European vice president of sales and marketing at Neoware, explained that good margins are available to resellers.
"As the figures show, this is a growing market and resellers can make good margins through the services and consultancy related to this type of technology," he said.
Neoware services the channel through distributors Centia, Adtcom and Getech.
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