Datacenters & Servers

Dell EMC, HPE Lead Server Market Growth, Says Gartner

Server Market

The worldwide server market continued to grow through 2017 as worldwide server revenue increased 25.7 percent in the fourth quarter of 2017, while shipments grew 8.8 percent year over year, according to Gartner, Inc. In all of 2017, worldwide server shipments grew 3.1 percent and server revenue increased 10.4 percent compared with full-year 2016. Dell EMC and Hewlett Packard Enterprise (HPE) were neck-and-neck in the worldwide server market based on revenue, it said.

“Server growth was driven by relatively strong economies for the quarter across the globe,” said Jeffrey Hewitt, research vice president at Gartner. “This was a somewhat surprising quarter because the strength was exhibited in a variety of positive server shipment and revenue mixes in almost all geographies.”

Regional results were a mixed bag. North America and Asia/Pacific were particularly robust demonstrating double-digit growth in revenue (27.6 percent and 35.1 percent, respectively). In terms of shipments, North America grew 9.7 percent and Asia/Pacific grew 21.2 percent. EMEA posted strong yearly revenue growth of 19.9 percent while shipments decreased 7.9 percent. Japan grew 4.8 percent in revenue, but declined 5.1 percent in shipments. Latin America was the only region to exhibit a decline in both shipments (negative 4.7 percent) and revenue (negative 2.9 percent) in the fourth quarter of 2017.

Dell EMC ended the year in the No. 1 spot with 19.4 percent market share, followed closely by HPE with 19.3 percent of the market. Dell EMC experienced strong growth in the quarter with 39.9 percent growth. HPE grew 5.5 percent. Inspur Electronics experienced the strongest growth in the fourth quarter of 2017 with 127.8 percent growth.

Table 1Worldwide: Server Vendor Revenue Estimates, 4Q17 (U.S. Dollars)

Company 4Q17

Revenue

4Q17 Market Share (%) 4Q16

Revenue

4Q16 Market Share (%) 4Q17-4Q16 Growth (%)
Dell EMC 3,606,976,178 19.4 2,578,181,854 17.4 39.9
HPE 3,578,005,770 19.3 3,392,601,012 23.0 5.5
IBM 2,623,501,533 14.1 1,732,474,861 11.7 51.4
Inspur Electronics 1,260,671,411 6.8 553,514,048 3.7 127.8
Huawei 1,244,283,075 6.7 1,149,813,371 7.8 8.2
Others 6,253,392,745 33.7 5,369,366,683 36.3 16.5
Total 18,566,830,711 100.0 14,775,951,829 100.0 25.7

Source: Gartner (March 2018)

In server shipments, Dell EMC maintained the No. 1 position in the fourth quarter of 2017 with 18.2 percent market share (see Table 2). Despite a decline of 12.8 percent in server shipments, HPE secured the second spot with 13.8 percent of the market.

Table 2Worldwide: Server Vendor Shipments Estimates, 4Q17 (Units)

Company 4Q17

Shipments

4Q17 Market Share (%) 4Q16

Shipments

4Q16 Market Share (%) 4Q17-4Q16 Growth (%)
Dell EMC 582,720 18.2 562,029 19.1 3.7
HPE 439,936 13.8 504,407 17.2 -12.8
Huawei 257,916 8.1 245,611 8.4 5.0
Inspur Electronics 235,658 7.4 141,132 4.8 67.0
Lenovo 181,523 5.7 220,296 7.5 -17.6
Others 1,499,578 46.9 1,265,169 43.1 18.5
Total 3,197,331 100.0 2,938,644 100.0 8.8

Source: Gartner (March 2018)

The x86 server market increased in revenue by 23.7 percent, and shipments were up 8.9 percent in the fourth quarter of 2017. On the whole, in 2017, worldwide server shipments increased 3.1 percent, while revenue grew 10.4 percent.

“Both enterprises and hyperscale data centers produced positive results globally for the year as end users seek to implement more digital business solutions,” said Hewitt. “The outlook for 2018 suggests that modest growth will continue, with enterprise end users taking an ongoing hybrid approach to both on-premises and public cloud choices based on their server application objectives.”

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