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Datacenter / IaaS

Global server market revenue surges 33.4% in 1Q18: Gartner

server market revenue

The global server market continues its growth with server revenue increasing 33.4% and shipments growing 17.3% YoY in the first quarter of 2018, according to Gartner.

The growth of server market is driven by increased investment in hyperscale and data centers by large and medium-sized enterprises looking to abandon their legacy systems, update infrastructure, and adopt emerging technologies.

“Enterprises and midsize businesses are in the process of investing in their on-premises and colocation infrastructure to support server replacements and growth requirements even as they continue to invest in public cloud solutions,” said Jeffrey Hewitt, research vice president at Gartner. “Additionally, when it came to server average selling prices (ASP) increases for the quarter, one driver was the fact that DRAM prices increased due to constrained supplies.”

  • By Server Revenue:

Dell EMC and HPE continued their dominance in the global server market in terms of revenue in the first quarter of 2018. The server revenue of Dell EMC grew by 51.4%, holding 21.5% share in the server market.

Inspur Electronics witnessed the highest growth (120.4%) in the first quarter and replaced IBM who ranked third during the final quarter of 2017.

Lenovo held the fourth position, holding 6.5% share in the server market, closely followed by IBM (6.4%).

server market revenue 1Q18

  • By Server Shipments:

Dell EMC maintained its top position when it came to server shipments, holding 18.2% market share. HPE held onto the second position with 13.1% market share, despite a decline of 8.5% in the server shipments.

Inspur Electronics has jumped to third position in the server shipments as well, replacing Huawei. The company held 6.6% market share during the first quarter.

server shipments

  • By Regions:

North America and Asia Pacific region again witnessed the strongest growth in revenue (34% and 47.8%, respectively). Both the regions saw significant growth in server shipments as well, growing 24.3% (North America) and 21.9% (APAC).

 EMEA saw robust revenue growth (32.1%) in the first quarter of 2018, while shipments grew 2.7%.

Japan witnessed decline in server revenue (-7.3%), as well as server shipments (-5.0%).

Latin America experienced 19.2% growth in revenue, but declined by 1.8% in server shipments.

Also read: Indian organizations increasingly shifting from traditional to augmented analytics tools: Gartner

The revenue of x86 server market increased by 35.7%, while shipments grew by 17.5% in first quarter of 2018.

However, the revenue and shipments rates in RISC/Itanium UNIX market continued to struggle, dropped by 52.8% and 46.7%, respectively.

Gartner will further discus the server market trends and infrastructure and operations at the Gartner Global Infrastructure & Operations events.

Images source: Gartner

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