[Fwd] Low-End Workstations

From: Yakov Horenstein (yakov@planet.it)
Date: Tue Apr 07 1998 - 10:30:45 EEST

Is Your Company Prepared for Wintel's Invasion of the World Market For
Low-End Workstations?
(PR Newswire; 04/06/98)

MOUNTAIN VIEW, Calif., April 6 /PRNewswire/ Are you prepared for the
changes that will accompany the recent introduction of Wintel systems to
the desktops of the world's technical computer users? In 1997, as Wintel
systems finally became competitive, they began to collide with already
established RISC/UNIX low-end workstations, creating not only the tactical
concerns of intra-segment competition, but the strategic problems of
inter-segment competition.

According to recent strategic research by Frost & Sullivan, World Markets
for Low-End Workstations should see a substantial increase in units shipped
in 1998, as well as the first increase in revenues in four years. Some of
the factors leading to these market improvements include falling prices,
improvements in technology, and new market entrants. In order to navigate
successfully through the twists and turns this market will take in the
future, it is imperative that current market players and those considering
entrance into the market remain educated on market trends, issues, drivers
and restraints.

Analyzed by major segment, this research is divided into the Wintel
workstation market and the low-end RISC/UNIX workstation market, for
greater depth and clarity of market research exploration. Some factors
fueling the phenomenal future growth forecasted for the Wintel workstation
market include attractive price/performance, new graphics chips and
accelerators, and lower total cost of ownership (TCO). Factors driving the
low-end RISC/UNIX workstation market include a very large installed base,
strong preference among engineers for UNIX, and easy access to historical
UNIX-formatted data.

The dynamics of these two market segments are quite different. In the
Wintel workstation market, successful companies share many of the same
characteristics including well-established distribution channels and
established reputation for and technical knowledge of high-quality Wintel
PCs. Likewise, winning companies participating in the low-end RISC/UNIX
workstation market share the ability to respond to competition with
ever-lower system prices, as well as strong brand recognition in the
scientific and engineering communities. Because there is much to learn from
studying successful companies in any market, this study provides highly
motivated market players the chance to sneak a peak at the strategies of
those who are cashing in on this radically expanding market.

As the two technologies begin to occupy the same market space, an
increasing number of companies are offering both RISC and Wintel products.
According to Frost & Sullivan Information Technology Research Analyst Abha
Garg, "The established RISC community now faces new problems and choices
stemming from the Wintel invasion of the low-end workstation market. In
response, RISC vendors are forced to choose between trying to beat them,
trying to join them, or seeking market share and profits in other markets
by emphasizing more expensive, higher-end systems."

Technologies covered in this study include: Wintel and low-end RISC/UNIX

Companies participating in this market include: Acer Inc., Compaq Computer
Corporation, Core Microsystems, Inc., Dell Computer Corporation, Digital
Equipment Corporation, Gateway 2000, Inc., HAL Computer Systems, Inc.,
Hewlett Packard Company, Intergraph Corporation, International Business
Machines Corp., Invincible Technologies Corporation, MaxVision Corporation,
Micron Electronics, Inc., NCR Corporation, NeTpower, Inc., Ross
Technologies. Inc., Siemens Nixdorf Informationssysteme AG., Silicon
Graphics, Inc, Sun Microsystems, Inc., Tri- Star Computer Corporation, and
UMAX Technologies, Inc. Related companies include: Absoft Corporation,
AAccelGraphics, Inc, Advanced Visual Systems, Inc., Algor, Inc., Altair
Computing, Inc., AMAX Engineering Corp., Autodesk, Inc., BTG Inc., BOLData
Technology, Inc., Cadence Design Systems, Inc., Caliber Computer
Corporation, Carrera Computer Inc., DeskStation Technology, Inc., Diamond
MultiMedia Systems Inc., Dynamic Pictures, Inc., ELSA, AG., ELSA, Inc.,
Enter Software, Inc., Enterprise Software Products, Inc., eyeon Software,
Inc., Evans & Sutherland Computer Corporation, Fujitsu Ltd., Fujitsu
Microelectronics, Inc., Gemini Facilities Core Group, GrayTech Software,
Inc., Harmonic Software, Inc., Hash, Inc., HYMCO Technologies, Inc., Intel
Corporation, InterLinear Technology, Inc., Leadtek Research, Inc.,
Lightscape Technologies, Inc., Mark V Systems Ltd., MAYA Heat Transfer
Technologies, Microsoft Corporation, Mitsubishi Electronics America, Inc.,
Motorola, NAG (The Numerical Algorithm Group Ltd), NeoVision Hypersystems,
Inc., NEC CSD, Olivetti Computer Worldwide, Omnicomp Graphics Corporation,
Quantex Microsystems, Inc., Parametric Technology Corporation, Polywell
Computers Inc., Samsung, Sharp, Simucad, Inc., SolidWorks Corporation,
Surfware, Inc., Sybase, Inc., Syndesis Corporation, Synopsys, Inc., The
MathWorks, Inc., The Parkside Organization, Inc., UMAX Data Systems, Inc.,
ViaGrafix, Visionael Corporation, and Vobis Microcomputer AG.

This Information Technology Industry research has integrated the Market
Engineering consulting philosophy into the entire research process.
Critical phases of this research included: Identification of industry
challenges, market engineering measurements, strategic recommendations,
planning and market monitoring. All of the vital elements of this system
help the market participants navigate successfully through the world
markets for low-end workstations.

SOURCE Frost & Sullivan, 04/06/98
CONTACT: Rachel Putter of Frost & Sullivan, 650-237-4947, or fax,
650-903-0915 Web site: http://www.frost.com/

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