War may slow server mkt growth in APAC

SINGAPORE: IDC has said in a statement that the market for servers, computers connecting multiple users, grew 5.9 percent year-on-year in the last quarter of 2002 to $1.66 billion, driven by strong demand in China and South Korea, the two biggest server markets in the region. It was the second straight year-on-year quarterly growth after five quarters of declines, the firm said. "However, war clouds loom large over the global economy which is expected to dampen regional server investments in the first half of the year (2003)," the research firm said.

It said demand from the government, financial and telecommunication segments drove server spending in China in the fourth quarter while an improving economy driven by domestic consumption boosted the South Korean market.

The firm said Singapore's market showed a decline in year-on-year growth in the quarter due to continued sluggishness in the manufacturing and telecommunications segments but this was offset somewhat by spending in the government, education and financial segments.