IBM Fights to Recover PC Server Market Losses

March, 2002


The drop in IBM’s server revenues by more than 10 percent during 1999 caused CEO Lou Gerstner to name Samuel Palmisano to head a new server business entity. Palmisano is viewed by many as a likely successor to Gerstner, so this move signifies how serious IBM is about battling to regain its lost market share. IBM is in third position in the server market and is challenged by Compaq, Dell, and Hewlett-Packard. IBM is revitalizing every aspect of its server business in order to turn the situation around.