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Worldwide Server Market Revenue Up 38.6% in Q1
Source: www.telecompaper.com
Source Date: Thursday, May 31, 2018
Focus: Citizen Engagement
Created: Jun 03, 2018

Vendor revenue in the worldwide server market increased 38.6 percent year over year to USD 18.8 billion during the first quarter, according to data from International Data Corporation (IDC). Worldwide server shipments increased 20.7 percent year over year to 2.7 million units in Q1.

The overall server market continued to strengthen with its third consecutive quarter of double-digit growth, generating more revenue than any other first quarter on record. This historic demand for servers is driven by a market-wide enterprise refresh cycle, strong demand from cloud service providers, increased use of servers as the core building blocks for software-defined infrastructure, broad demand for newer CPUs such as Intel's Purely platform, and growing deployments of next generation workloads. Average selling prices (ASPs) increased during the quarter due to richer configurations and increased component costs. The increased ASPs also contributed to revenue growth.

Volume server revenue increased by 40.9 percent to USD 15.9 billion, while midrange server revenue grew 34 percent to USD 1.7 billion. High-end systems grew 20.1 percent to USD 1.2 billion.

Dell and HPE/New H3C Group were statistically tied for first in the worldwide server market with 19.1 percent, and 18.6 percent market shares respectively in Q1. Lenovo, IBM, and Cisco were all statistically tied for third position in the market with respective shares of 5.8 percent, 5.3 percent, and 5.2 percent. The ODM Direct group of vendors grew revenue by 57.1 percent (year over year) to USD 4.6 billion.

Dell was the fastest growing server vendor among the top 5 companies, growing revenue 50.6 percent year over year to USD 3.6 billion and gaining 1.5 points of revenue share year over year on a strong performance in all major geographic regions. HPE/New H3C Group revenue increased 22.6 percent year over year in Q1 to USD 3.5 billion. HPE's share and year-over-year growth rate includes revenues from the H3C joint venture in China that began in May of 2016; thus, the reported HPE/New H3C Group combines server revenue for both companies globally.

Dell Inc. led the worldwide server market in terms of unit shipments, accounting for 20.6 percent of all units shipped during the quarter.
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