Analysts believe that as many as two-thirds of the applications currently performed on mainframes are likely to remain in that sector for the long term. Technological developments from the low and high end of the computer market also will be introduced into mainframe computers to help them compete in terms of both price and performance. The midrange segment of the computer industry consists of those systems which serve multiple numbers of networked users, either locally or remotely. Computers falling into this segment of the market are generally less expensive and less powerful than mainframes, and are distinguished from high-end workstations in that they serve from two to several hundred users. However, server sales declined 11 percent in the second quarter of 1998 due to Asian financial problems and the transition to next generation chips inside of computers.
Computer servers are the fastest growing segment of the computer hardware business.
Another reason is the increasing use of companies to continuously link disparate computer systems together to enhance efficiency and productivity. Client server systems are used to distribute applications to hundreds of desktops simultaneously. This represented shipments of 1.75 million units. The computer server segment is itself segment into entry level, midrange, and high-end systems. Workstation Segment Sun Microsystems continues to be the leader in Unix-based computer workstations.