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Dell charges ahead with server market lead

Dell charges ahead with server market lead

HPE places second ahead of IBM and Lenovo

Credit: Dell

Dell has taken out the top spot in the worldwide server market in the second quarter of 2018, holding 18.8 per cent share with revenues of US$4.2 billion, a 52.9 per cent growth.

The tech giant also led the server market in terms of unit shipments, accounting for 19.5 per cent of all units shipped during the quarter.

HPE came in a close second, retaining 16.6 per cent revenue share with revenues of US$3.7 billion, an 11.7 per cent revenue growth in comparison to the same period last year.

These figures were released by analyst group, IDC within its Worldwide Quarterly Server Tracker report, which saw vendor revenue in the worldwide server market increase 43.7 per cent year-on-year to US$22.5 billion during the second quarter of 2018.

Worldwide server shipments increased 20.5 per cent year-on-year to 2.9 million units.

According to IDC, the overall server market continues to experience historic demand, with the second quarter of 2018 marking the fourth consecutive quarter of double digit revenue growth and its highest total revenue ever.

Volume server revenue increased by 42.7 per cent to US$18.4 billion, while mid-range server revenue grew 63 per cent to US$2.5 billion - high-end systems grew 30.4 per cent to US$1.7 billion.

IDC servers and storage senior research analyst Sanjay Medvitz said the server market continues to flourish amid a market-wide enterprise refresh cycle and increasing demand from cloud service providers.

"Enterprises continue to invest in new infrastructure to support next-generation applications and achieve cloud-like benefits on-premises,” he said. “Hyperscalers also continue to update and expand their data centre presence, benefiting ODM direct suppliers.

"Server revenue growth has also been driven by increasing average selling prices (ASPs). This is due to richer configurations, DRAM prices, and new processor platforms."

Medvitz highlighted that server revenue growth has also been driven by increasing average selling prices due to richer configurations, DRAM prices, and new processor platforms.

While Dell and HPE secured their top positions, IBM and Lenovo both tied for third place with respective shares of 7.3 per cent and 6.9 per cent.

Meanwhile, Inspur, Cisco and Huawei rounded out the top five, tieing with 4.8 per cent, 4.8 per cent and 4.3 per cent respective shares of vendor revenue.

The ODM (original design manufacturer) direct group of vendors increased its collective revenue by 55.9 per cent year-on-year to US$5.5 billion.


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