Story image

Gartner: global server market revenues still growing strongly

15 Jun 2018

The worldwide server market continues to experience growth according to the latest figures from Gartner, with revenue increasing by 33.4% and shipments growing by 17.3% year over year for Q1 2018.

The growth reflects a continuation of the growth the market experienced at the end of the 2017 year period, driven not only by increased hyperscale spend but also the development of on-premises data centres by enterprise and mid-sized businesses.

Gartner research vice president Jeffrey Hewitt says, “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.”

"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." In terms of regional performance, Gartner reports mixed results, with North America and Asia/Pacific experienced particularly strong growth double-digit growth in revenue (34% and 47.8%, respectively).

Looking at shipments, North America grew 24.3% and Asia/Pacific grew 21.9%, while EMEA posted strong yearly revenue growth of 32.1% with an increase in shipments of 2.7%.

However, Japan experienced a decline in both shipments and revenue (-5.0% and -7.3%, respectively) and Latin America experienced a decline in shipments (-1.8%), but growth in revenue (19.2%).

Vendors

Gartner says Dell EMC led the pack in terms of vendors, with 51.4% growth in the worldwide server market based on revenue in the first quarter of 2018.

This growth helped widen the gap a bit between Dell EMC and Hewlett Packard Enterprise (HPE) as Dell EMC ended the quarter in the No. 1 spot with 21.5% market share, followed closely by HPE with 19.9% of the market.

Inspur Electronics experienced the strongest growth in the first quarter of 2018, with 120.4% growth.

In server shipments, Dell EMC maintained the No. 1 position in the first quarter of 2018 with 18.2% market share.

Despite a decline of 8.5% in server shipments, HPE secured the second spot with 13.1% of the market.

Looking to market segments, the x86 server market increased in revenue by 35.7%, and shipments were up 17.5% in the first quarter of 2018.

Meanwhile, the RISC/Itanium UNIX market continued to struggle with shipments down 52.8%, while revenue declined 46.7%.

Microsoft appoints new commercial and partner business director
Bowden already has almost a decade of Microsoft relationship management experience under her belt, having joined the business in 2010.
Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.