Worldwide Server Revenue Grew 25.7% in the Fourth Quarter of 2017, While Shipments Increased 8.8%: Gartner

The worldwide server market continued to grow through 2017 as worldwide server revenue increased 25.7% in the fourth quarter of 2017, while shipments grew 8.8% year over year, according to Gartner, Inc. In all of 2017, worldwide server shipments grew 3.1% and server revenue increased 10.4% compared with full-year 2016.

“Server growth was driven by relatively strong economies for the quarter across the globe,” said Jeffrey Hewitt, research vice president at Gartner. “This was a somewhat surprising quarter because the strength was exhibited in a variety of positive server shipment and revenue mixes in almost all geographies.”

Regional results were a mixed bag. North America and Asia/Pacific were particularly robust demonstrating double-digit growth in revenue (27.6% and 35.1%, respectively). In terms of shipments, North America grew 9.7% and Asia/Pacific grew 21.2%. EMEA posted strong yearly revenue growth of 19.9% while shipments decreased 7.9 percent. Japan grew 4.8 percent in revenue, but declined 5.1% in shipments. Latin America was the only region to exhibit a decline in both shipments (negative 4.7%) and revenue (negative 2.9%) in the fourth quarter of 2017.

Dell EMC and Hewlett Packard Enterprise (HPE) were neck-and-neck in the worldwide server market based on revenue in the fourth quarter of 2017 (see Table 1). Dell EMC ended the year in the No. 1 spot with 19.4 percent market share, followed closely by HPE with 19.3% of the market. Dell EMC experienced strong growth in the quarter with 39.9% growth. HPE grew 5.5%. Inspur Electronics experienced the strongest growth in the fourth quarter of 2017 with 127.8% growth.

Table 1
Worldwide: Server Vendor Revenue Estimates, 4Q17 (U.S. Dollars)

Company4Q17

Revenue

4Q17 Market Share (%)4Q16

Revenue

4Q16 Market Share (%)4Q17-4Q16 Growth (%)
Dell EMC3,606,976,17819.42,578,181,85417.439.9
HPE3,578,005,77019.33,392,601,01223.05.5
IBM2,623,501,53314.11,732,474,86111.751.4
Inspur Electronics1,260,671,4116.8553,514,0483.7127.8
Huawei1,244,283,0756.71,149,813,3717.88.2
Others6,253,392,74533.75,369,366,68336.316.5
Total18,566,830,711100.014,775,951,829100.025.7

Source: Gartner (March 2018)

In server shipments, Dell EMC maintained the No. 1 position in the fourth quarter of 2017 with 18.2% market share (see Table 2). Despite a decline of 12.8%in server shipments, HPE secured the second spot with 13.8% of the market.

 

Table 2
Worldwide: Server Vendor Shipments Estimates, 4Q17 (Units)

Company4Q17

Shipments

4Q17 Market Share (%)4Q16

Shipments

4Q16 Market Share (%)4Q17-4Q16 Growth (%)
Dell EMC582,72018.2562,02919.13.7
HPE439,93613.8504,40717.2-12.8
Huawei257,9168.1245,6118.45.0
Inspur Electronics235,6587.4141,1324.867.0
Lenovo181,5235.7220,2967.5-17.6
Others1,499,57846.91,265,16943.118.5
Total3,197,331100.02,938,644100.08.8

Source: Gartner (March 2018)

 

The x86 server market increased in revenue by 23.7%, and shipments were up 8.9% in the fourth quarter of 2017.

 

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