Menu
Server growth remains healthy in Q2, despite fall in midrange systems

Server growth remains healthy in Q2, despite fall in midrange systems

Demand for higher-end and low-end servers helped drive growth

Server sales continued to remain steady in the second quarter, in spite of weakening demand for midrange systems, according to research firm IDC.

During the period, vendors collectively saw their server revenue grow by 6.1 per cent year over year to $US13.5 billion. Meanwhile, server shipments increased by 3.2 per cent from a year ago.

Revenue in the market was up on sales of higher-end servers, and lower-end systems used for hyperscale computing. However, demand for midrange systems fell by 5.4 per cent year over year, due to the recent ending of the x86 server refresh cycle, IDC said.

In the second quarter, HP remained the market leader, with a 25.4 per cent share. The company's density-optimized servers were in high demand, with sales of the products jumping by 119 percent from a year ago.

In second place was Dell with a 17.5 per cent share. Its blade and rack servers saw healthy growth.

Third placed IBM was the only vendor among the top five to see its market share and revenue fall during the quarterly period. Last year, the company sold off its x86 server business to Chinese PC maker Lenovo. As a result, its server revenue fell by 32.9 per cent year over year.

In contrast, Lenovo saw its server revenue soar by over 500 per cent, benefiting from the acquisition deal with IBM. The Chinese company is hoping to become a major player in the server space, as it diversifies away from simply selling PCs.

Lenovo reached a statistical tie with Cisco for fourth place in the server market.

Geographically, the U.S. was the fastest-growing market for servers, with 12.6 per cent year over year growth. The Asia Pacific region, excluding Japan, followed the US with 12 per cent growth.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags serversstorageIDC

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments