White Box Market Shows Sign of ResurgencePRNewswire The population of North American solution provider companies that sell white box systems increased 10 percent during the second half of 2000, according to a just-released survey by Reality Research & Consulting. The gains came as market conditions stabilized in the wake of component shortages that contributed to fallout reported in the first half of 2000. But the latest population count, comprised of 31,700 solution provider companies selling white box systems in North America (U.S. and Canada), was still below 1999 levels. All told, the total population of solution provider organizations selling white box systems in North America declined 12 percent from an estimated 35,900 in 1999. Reality's June 2000 report pegged the bottom of the market at 28,800 white box solution provider companies as new opportunities in services, the Internet space and other emerging-technology sectors took hold in the channel. Reality finds the characteristics of this market are comparable to 1999, with more than one-third of white box solution providers describing their primary business activity as value-added solution providers. More than one-fourth identifies themselves as systems and network integrators. The findings are based on analysis of a Reality/Gallup phone poll that queried 406 white box solution providers in January 2001. The completed total survey size of 406 white box solution provider respondents in each wave have a +/- 5 percent margin of error at a confidence level of 95 percent, allowing statistically valid uplifting of survey findings to the overall population of white box solution providers. As was the case in 1999, nearly all white box system sales (93 percent, on average), are to end-customers including businesses, consumers and government/education buyers. Nearly three-quarters of the population also sells brand-name manufacturer systems and/or servers, up from two-thirds in June 2000. "Solution provider organizations that formerly sold only white box systems and servers have added brand-name units to their sales card to mitigate against future component shortages," said Richard March, Senior Director at Reality Research, a leading market research and analysis firm Small businesses remain the primary market for white box solution provider companies. Most white box solution provider companies sell white box desktop PCs and servers to very small firms with one to 20 employees (80 percent). Three-fourths sell to small companies with 21 to 100 employees or small offices/home offices (76 percent each), and two-thirds sell to consumers or individuals (66 percent). "As white box server sales volume grew in the second half of 2000, Reality finds increases in the number of white box solution provider companies selling to midsize and large firms employing 1,000 or more," said March. Reality Research & Consulting delivers strategic and tactical market intelligence and analysis on the IT market and channels. Its client list includes major technology companies, such as Hewlett-Packard, IBM, Intel, 3Com and Microsoft. Reality is an independent business unit of CMP Media Inc. It is based in Jericho, NY, with offices located in Waltham, MA and Redwood Shores, Ca. For a complete listing and description of Reality's products and services, visit http://www.realityresearch.com/. CMP Media Inc. (http://www.cmpnet.com/) is a leading high-tech media company providing essential information and marketing services to the entire technology spectrum-the builders, sellers and users of technology worldwide. Capitalizing on its editorial strength, CMP is uniquely positioned to offer marketers comprehensive, integrated media solutions tailored to meet their individual needs. Its diverse products and services include newspapers, magazines, Internet products, research, direct marketing services, education and training, trade shows and conferences, custom publishing, testing and consulting. CONTACT: Elizabeth Gallagher, 516-733-8698, egallagh@cmp.com, or Richard March, 516-733-733-8645, rmarch@cmp.com, both of Reality Research SOURCE: Reality Research & Consulting Contact: Elizabeth Gallagher, 516-733-8698, egallagh@cmp.com, or Richard Website: http://www.realityresearch.com/ Company News On-Call: http://www.prnewswire.com/comp/181993.html or fax, |