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HPE edges Dell as enterprise server demand heightens

HPE edges Dell as enterprise server demand heightens

Asia Pacific performed “very well” during quarter, growing 31 per cent

Credit: Dreamstime

Hewlett Packard Enterprise (HPE) stole a small server march on Dell Technologies during the second quarter of 2020, nudging ahead in terms of revenue, unit shipments and market share.

According to IDC findings, HPE - alongside Chinese joint venture H3C Group - reported US$3.58 billion in revenue during the three-month period, shipping 456,642 units and accounting for 14.9 per cent market share in the process.

In comparison, server revenue for Dell Technologies totalled approximately $3.3 billion during the quarter, shipping 432,556 units to represent 13.9 per cent market share.

On paper, such close margins warrant a “statistical tie” with IDC ranking both vendors as joint market leaders due to the fact a difference of one per cent or less exists in terms of revenue and shipment shares.

Next up is Inspur / Inspur Power Systems in third place with 10.5 per cent share and “impressive” 77 per cent year-over-year growth, followed by Lenovo and IBM "statistically tied" for fourth with 6.1 per cent and six per cent share respectively.

Rounding off the list is the original design manufacturer (ODM) group of vendors, which accounted for 28.8 per cent of total server revenue at $6.9 billion with year-over-year growth of 63.4 per cent, delivering 34.4 per cent of all units shipped during the quarter.

Credit: IDC

More broadly speaking, the worldwide server market grew 19.8 per cent year-over-year to $24 billion during the second quarter, with shipments increasing 18.4 per cent to reach nearly 3.2 million units.

Specific to server class, volume server revenue was up 22.1 per cent to $18.7 billion, while mid-range server revenue declined 0.4 per cent to approximately $3.3 billion and high-end systems grew by 44.1 per cent to $1.9 billion.

“Global demand for enterprise servers was strong during the second quarter of 2020,” said Paul Maguranis, senior research analyst of Infrastructure Platforms and Technologies at IDC.

"We certainly see areas of reduced spending, but this was offset by investments made by large cloud builders and enterprises targeting solutions that support shifting infrastructure needs caused by the global pandemic. Investments in Asia Pacific were also particularly strong, growing 31 per cent year-over-year.”


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