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Dell and HPE lock horns in server market

Dell and HPE lock horns in server market

Inspur, Lenovo and Cisco make up chasing vendor pack

Credit: Dreamstime

Dell Technologies and Hewlett Packard Enterprise (HPE) remain locked at the top of a declining global server market, despite demand for enterprise compute “near historic highs”.

According to IDC findings, revenues for Dell Technologies declined 10.8 per cent year-over-year during the third quarter of 2019, while HPE - including a joint venture with New H3C Group in China - dropped 3.2 per cent year-over-year.

IDC declares a “statistical tie” when there is a difference of one per cent or less in the share of revenues or shipments among two or more vendors.

Ranked third is Inspur/Inspur Power Systems, which captured nine per cent market share after growing revenues 15.3 per cent year-over-year.

Meanwhile, Lenovo and Cisco ended the quarter locked together with 5.4 per cent and 4.9 per cent revenue share, respectively. Lenovo reported declines of 16.9 per cent, with Cisco revenue increasing 3.1 per cent.

Rounding off the vendor list, the ODM Direct group of vendors accounted for 26.4 per cent of total revenue and declined 7.1 per cent year over year to $5.82 billion.

Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 16.4 per cent of all units shipped during the quarter.

Credit: IDC

More broadly speaking, vendor revenue in the worldwide server market declined 6.7 per cent year-over-year to US$22 billion during the three-month period. Delving deeper, global server shipments declined three per cent year-over-year, coming in at just under 3.1 million units.

Specific to server class, volume server revenue was down four per cent to $17.9 billion, while midrange server revenue declined 14.3 per cent to $3 billion and high-end systems contracted by 23.7 per cent to $1.1 billion.

“While the server market did indeed decline last quarter, next generation workloads and advanced server innovation (e.g., accelerated computing, storage class memory etc.) keep demand for enterprise compute at near historic highs," said Paul Maguranis, senior research analyst, IDC.

“In fact, 3Q19 represented the second biggest quarter for global server unit shipments in more than 16 years, eclipsed only by 3Q18."


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