Data centre

Quarterly worldwide server revenue hits $14.7bn

Image: Stockfresh

12 December 2017

Worldwide server revenue has recorded 16% growth in what is the second consecutive quarter of growth in the market.

According to research and analyst firm, Gartner, the third quarter of 2017 saw worldwide server revenue reach $14.7 billion, or 16% compared to the same period in 2016, which recorded $12.7 billion.

The previous quarter had also registered positive but shy growth of 2.8% according to data from Gartner.

However, the first quarter of 2017 saw a negative start with revenues down by 4.5%, going from $13.1 billion down to $12.5 billion.

“The third quarter of 2017 produced continued growth on a global level with varying regional results,” Gartner research vice president, Jeffrey Hewitt, said. “A build-out of infrastructure to support cloud and hybrid-cloud implementations was the main driver for growth in the server market for the period.”

Shipments have followed the trend with 5.1% increase in the third quarter of 2017.

“x86 servers increased 5.3% in shipments for the year and 16.7% in revenue in the third quarter of 2017,” Hewitt said.

“RISC/Itanium Unix servers declined globally, down 23.5% in shipments and 18.3% in vendor revenue compared with the same quarter last year.”

Hewlett Packard Enterprise (HPE) continued to lead the worldwide server market, based on revenue. Despite a decline of 3.2%, the company posted $3.1 billion in revenue for a total share of 21% for the third quarter of 2017.

Dell EMC maintained the number two position with 37.9% growth and 20.8% market share. Inspur Electronics experienced the highest growth in the quarter with 116.6%, driven by ongoing sales into China-based cloud providers, as well as global expansion efforts.

In server shipments, Dell EMC maintained the top position in the third quarter of 2017 with 17.8% market share, while HPE secured the second spot with 16.4% of the market.

Inspur Electronics was the only vendor in the top five to experience positive growth in the quarter.

IDG News Service

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