Spending on computer servers in the Asia Pacific region excluding Japan hit an all-time record of $1.1bn in the second quarter of this year driven by quickly recovering economies, rapid growth in internet subscriptions and YK2-driven replacement of older computers. According to figures from International Data Corporation (IDC), revenues were up 47% year-on-year in the quarter to June 30. However an IDC report said sales could slow down later in the year when Y2K spending by larger organisations tails off.

Every country in the region recorded growth with the strongest coming from Korea, where sales revenues more than doubled, and Taiwan. In terms of overall sales the two largest markets remained mainland China and Australia. Every country market showed positive growth on the previous year’s. The top four server vendors in the region were IBM, Hewlett-Packard, Compaq, and Sun Microsystems which have a combined 80% market share.