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Global server revenue down 0.8 percent, but shipments up two percent

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September 14, 2016

Fresh new stats from Gartner today reveal that global server revenue is down 0.8 percent while shipments are up by two percent.

Gartner added that Dell has surpassed HPE to the top spot for shipments. In fact, the second quarter of this year saw very regionalized trends in server revenues and shipments.

The marketing research firm said that everywhere except for Asia/Pacific and North America did the industry decline, though shipments in those areas rose by 5.6 percent and three percent respectively.

According to Jeffrey Hewitt, research vp at Gartner-- "Dell garnered 19.3 percent of the market and moved into the number one position in global server shipments due primarily to growth resulting from various programs it has in place in the Asia/Pacific region, most notably in China."

"Its rival HPE continued to lead the x86 market in revenue with 26 percent of the market," added Hewitt.

"On the other hand, x86 server sales rose by 2.1 percent in shipments and 5.8 percent in revenue in the second quarter of 2016," Gartner asserted.

Dell's strong performance in the x86 market saw it overtake HPE on shipments, although its revenues haven't matched that growth, at least not yet.

Overall, HPE continues to hold more of the market share in revenue although sales did drop by 6.4 percent year-on-year, while Dell saw almost ten percent growth during the same period.

After selling their division to Lenovo, IBM’s server revenues dropped by a staggering 34.4 percent.

HPE’s overall shipments were down year-on-year, shrinking by more than 18 percent, while Dell, Lenovo, Huawei, Supermicro and a few others all made considerable gains during the same period.

Source: Garther Market Research.

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