Menu
Dell and HPE tied as server market stumbles

Dell and HPE tied as server market stumbles

Inspur, Lenovo and IBM make up chasing vendor pack

Credit: Dreamstime

The number one position in the server market was shared by Dell Technologies and Hewlett Packard Enterprise (HPE) during the second quarter of 2019, amid a decline in customer spending.

According to IDC findings, Dell Technologies declined 13 per cent year-over-year during the period, while HPE - alongside H3C Group - reported a revenue slide of 3.6 per cent compared to the second quarter of 2018.

Such a decline places the two technology giants at the front of the market, with Dell Technologies and HPE holding revenue shares of 19 per cent and 18 per cent respectively.

Behind the leading pack, Inspur assumed third position with 7.2 per cent market share following a revenue increase of 32.3 per cent year-over-year, followed by Lenovo and IBM - tying for fourth position with revenue shares of 6.1 per cent and 5.9 per cent respectively.

Lenovo reported a revenue decline of 21.8 per while IBM saw its revenue contract 27.4 per cent year-over-year.

Rounding off the list, the original design manufacturer direct group of vendors accounted for 21.1 per cent of total revenue, declining 22.9 per cent year-over-year to US$4.23 billion.

In addition, Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 17.8 per cent of all units shipped during the quarter.

Credit: IDC

Collectively, vendor revenue in the worldwide server market declined 11.6 per cent year-over-year to just over $20 billion during the second quarter, with global server shipments declining 9.3 per cent to just under 2.7 million units.

“The second quarter saw the server market's first contraction in nine quarters, albeit against a very difficult compare from one year ago when the server market realised unprecedented growth," said Sebastian Lagana, research manager, IDC.

After a stretch of prolonged market growth that drove the server market to “historic heights”,  Lagana said the global server market declined for the first time since the fourth quarter of 2016.

Lagana said that "all classes of servers" were impacted, with volume server revenue down 11.7 per cent to $16.3 billion, while mid-range server revenue declined 4.6 per cent to $2.4 billion and high-end systems contracted by 20.8 per cent to $1.3 billion.

“Irrespective of the difficult compare, factors impacting the market include a slowdown in purchasing from cloud providers and hyper-scale customers, an off-cycle in the cyclical non-x86 market, as well as a slowdown from enterprises due to existing capacity slack and macroeconomic uncertainty,”  Lagana added.

On a geographic basis, the Asia Pacific market - excluding Japan - contracted 8.1 per cent.


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 IBMserverIDCLenovoInspurHewlett Packard EnterpriseDell Technologies

Featured

Slideshows

Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
EDGE 2019: Channel forges new partnerships during evening networking

EDGE 2019: Channel forges new partnerships during evening networking

Partners, vendors and distributors reconnected during a number of social gatherings during EDGE 2019. The first evening saw the channel congregate for a welcome party at the Hamilton Island yacht club, while the main poolside proved to be the perfect stop for a barbecue on the final night.

EDGE 2019: Channel forges new partnerships during evening networking
Show Comments