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

Brand Post

How to become the best IT MSP

This article provides guidance for managed service providers (MSPs) that want to grow their business. It is also useful for any IT service provider looking to move from the break-fix model to managed IT services.

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments