Global server revenue grows by 33.4 percent in Q1 2018: Gartner

Dell EMC experienced 51.4 growth in the worldwide server market based on revenue in the first quarter of 2018.

Gartner Jun 13th 2018

The growth at the end of 2017 continued for the worldwide server market in the first quarter of 2018 as worldwide server revenue increased 33.4 percent and shipments grew 17.3 percent year over year, according to Gartner.

"The server market was driven by increases in spending by hyperscale as well as enterprise and midsize data centers. 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."

Regional results were mixed. North America and Asia/Pacific experienced particularly strong growth double-digit growth in revenue (34 percent and 47.8 percent, respectively). In terms of shipments, North America grew 24.3 percent and Asia/Pacific grew 21.9 percent. EMEA posted strong yearly revenue growth of 32.1 percent while shipments increased 2.7 percent. Japan experienced a decline in both shipments and revenue (-5.0 percent and -7.3 percent, respectively). Latin America experienced a decline in shipments (-1.8 percent), but growth in revenue (19.2 percent).

Dell EMC experienced 51.4 growth in the worldwide server market based on revenue in the first quarter of 2018 (see Table 1). 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 percent market share, followed closely by HPE with 19.9 percent of the market. Inspur Electronics experienced the strongest growth in the first quarter of 2018 with 120.4 percent growth.

Table 1
Worldwide: Server Vendor Revenue Estimates, 1Q18 (U.S. Dollars)

Company

1Q18

Revenue

1Q18 Market Share (%)

1Q17

Revenue

1Q17 Market Share (%)

1Q18-1Q17 Growth (%)

Dell EMC

3,593,916,375

21.5

2,373,171,860

19.0

51.4

HPE

3,321,304,736

19.9

3,009,569,241

24.1

10.4

Inspur Electronics

1,188,428,802

7.1

539,259,419,

4.3

120.4

Lenovo

1,088,922,220

6.5

731,647,279

5.8

48.8

IBM

1,067,701,728

6.4

831,622,879

6.6

28.4

Others

6,432,219,303

38.5

5,023,547,428

40.2

28.0

Total

16,692,493,164

100.0

12,508,818,106

100.0

33.4

Source: Gartner (June 2018)

In server shipments, Dell EMC maintained the No. 1 position in the first quarter of 2018 with 18.2 percent market share (see Table 2). Despite a decline of 8.5 percent in server shipments, HPE secured the second spot with 13.1 percent of the market.

Table 2
Worldwide: Server Vendor Shipments Estimates, 1Q18 (Units)

Company

1Q18

Shipments

1Q18 Market Share (%)

1Q17

Shipments

1Q17 Market Share (%)

1Q18-1Q17 Growth (%)

Dell EMC

555, 792

18.2

466,800

17.9

19.1

HPE

400,958

13.1

428,169

16.8

-8.5

Inspur Electronics

200,283

6.6

139,203

5.4

43.9

Huawei

182,227

6.0

156,559

6.0

16.4

Lenovo

157,047

5.1

145,977

5.6

7.6

Others

1,555,783

51.0

1,254,892

48.2

24.0

Total

3,052,091

100.0

2,601,600

100.0

17.3

Source: Gartner (June 2018)

The x86 server market increased in revenue by 35.7 percent, and shipments were up 17.5 percent in the first quarter of 2018. The RISC/Itanium UNIX market continued to struggle with shipments down 52.8 percent, while revenue declined 46.7 percent.