Preliminary IDC Data Shows Gateway's Revenue
Percentage Growth Outpaced Volume Category Overall
POWAY, Calif., Feb. 6 /PRNewswire-FirstCall/ -- Gateway, Inc. posted the
highest annual percentage revenue growth in the volume server market among the
top 15 volume server vendors, according to preliminary results released this
week in IDC's "Worldwide Server Market Review, 2003."
(Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO )
Gateway's revenue from sales of its server products in the volume market
spiked more than 50 percent(1) in 2003, the leading percentage increase in a
field that included Hewlett-Packard, Dell, IBM and others. Gateway also
handily outpaced the volume server market(2) as a whole, which grew at a rate
of 9.7 percent year-over-year -- the fastest growing size class of the
worldwide server market(3), according to IDC.
In addition, Gateway embraced many of the report's recommendations in
providing server systems to small- and medium-sized businesses (SMBs),
government agencies and educational institutions. Gateway's emphasis on
industry standards, focus on single- and dual-processor systems, and ability
to remove complexity from its products were in line with IDC suggestions for
server vendors.
"Gateway continues to make progress in executing its enterprise systems
strategy, and we see the company as a viable, competitive option for
businesses seeking another vendor in the server marketplace," said Lloyd
Cohen, IDC's Director of Worldwide Market Analysis.
Gateway made significant progress in executing its server systems strategy
in 2003 -- all to better serve its business customers. In fact, Gateway's
rapid percentage growth in the volume server market can be attributed several
factors, including:
* An expanded portfolio of products -- At the start of 2002, Gateway
offered business customers a minimal line of five tower servers. As of
the end of 2003, Gateway had launched more than 15 server-related
products for SMBs and enterprise-class customers, including full-
featured tower servers (Gateway 920, 960, 980), ultra-dense rackmount
servers (Gateway 955, 975 and 995), and several related storage and
networking products.
* Innovation in a commodity market -- While several vendors continued to
take a low-value, commodity approach to the market, Gateway built
several unique features into its server product line in 2003 to provide
added value to customers. For example, Gateway's 995 four-way server
brought mainframe features into a mainstream appliance, such as Single
Device Data Correction (a.k.a., ChipKill(TM)), Memory Scrubbing, Light
Guided Diagnostics and dual-channel Ultra320 SCSI.
* Key strategic relationships -- To offer its customers best-in-breed
services, software and support for its server line, Gateway forged
several key strategic relationships in 2003. These included alliances
with IBM Global Services (for two- and four-hour response, among other
services)(4), Hitachi (storage area networks), SUSE (Linux operating
system support) and LANDesk (systems management software).
* Experienced management -- Gateway's growth in the server market in 2003
can be directly attributed to significant company investments in the
Enterprise Systems Division and in the hiring of a seasoned management
team led by Scott Weinbrandt -- a former Dell executive who now serves
as Gateway's senior vice president of enterprise systems and services.
"Gateway is gratified that customers continue to choose our award-winning
products and services in our systems and networking family," said Weinbrandt.
"Our commitment to customers is to continue to drive innovation and high-
quality customer service in 2004 to maintain our rapid growth in the server
marketplace."
Gateway is a leading branded integrator of technology solutions. From
high-end servers and storage products to market-leading plasma displays to
comprehensive services, Gateway delivers whole-office technology solutions,
coupled with high-touch customer service. Serving businesses, schools and
government agencies for more than 15 years, Gateway makes the purchase, use
and support of technology simple. Gateway customers include many of the
world's leading organizations, such as the U.S. Defense Logistics Agency,
University of Arizona and others. For more information on Gateway
Professional solutions, visit http://www.gateway.com/business.
About Gateway
Since its founding in 1985, Gateway (NYSE: GTW) has been a technology and
direct-marketing pioneer, using its call centers, web site and retail network
to build direct customer relationships. As a branded integrator of
personalized technology solutions, Gateway offers consumers, businesses and
schools a wide range of thin TVs, digital cameras, connected DVD players,
enterprise systems and other products, which work together seamlessly with its
award-winning line of PCs. Gateway is America's second most admired computer
company, according to Fortune magazine(5), and its products and services
received nearly 130 awards and honors last year. Visit http://www.gateway.com for
more information.
(1) Percentage growth cited was 50.4 percent on sales of approximately $52
million; source: IDC's "2003 Worldwide Server Market Review"
(2) Volume server market includes systems priced at less than $25,000;
source: IDC's "2003 Worldwide Server Market Review"
(3) Worldwide server market includes volume market, midrange market and
high-end market; source: IDC's "2003 Worldwide Server Market Review"
(4) Limited warranties and service agreements apply; visit gateway.com or
call 1-800-846-2000 for a free copy. May not be available in all
states.
(5) Source: Fortune magazine, March 3, 2003 issue
SOURCE Gateway, Inc.
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Related links:
http://www.gateway.com
http://www.gateway.com/business
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT:
Ted Ladd of Gateway, Inc., +1-858-848-2515,
or ted.ladd@gateway.com
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