Home Data Center Gartner Says Worldwide Server Shipments Grew 2.4 Per Cent in the Second Quarter of 2017; Revenue Grew 2.8 Per Cent

Gartner Says Worldwide Server Shipments Grew 2.4 Per Cent in the Second Quarter of 2017; Revenue Grew 2.8 Per Cent

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Gartner Says Worldwide Server Shipments Grew 2.4 Per Cent in the Second Quarter of 2017; Revenue Grew 2.8 Per Cent
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In the second quarter of 2017, worldwide server revenue increased 2.8 percent year over year, while shipments grew 2.4 percent from the second quarter of 2016, according to Gartner, Inc.

“The second quarter of 2017 produced some growth compared with the first quarter on a global level, with varying regional results,” said Jeffrey Hewitt, research vice president at Gartner. “The growth for the quarter is attributable to two main factors. The first is strong regional performance in Asia/Pacific because of data center infrastructure build-outs, mostly in China. The second is ongoing hyperscale data center growth that is exhibited in the self-build/ODM (original design manufacturer) segment.

“x86 servers increased 2.5 percent in shipments and 6.9 percent in revenue. RISC/Itanium Unix servers fell globally for the period — down 21.4 percent in shipments and 24.9 percent in vendor revenue compared with the same quarter last year. The ‘other’ CPU category, which is primarily mainframes, showed a decline of 29.5 percent in revenue,” Mr. Hewitt said.

Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue. Despite a decline of 9.4 percent, the company posted $3.2 billion in revenue for a total share of 23 percent for the second quarter of 2017 (see Table 1). Dell EMC maintained the No. 2 position with 7 percent growth and 19.9 percent market share. Huawei experienced the highest growth in the quarter with 57.8 percent.

Table 1 – Worldwide: Server Vendor Revenue Estimates, 2Q17 (U.S. Dollars)

Company

2Q17

Revenue

2Q17 Market Share (%)

2Q16

Revenue

2Q16 Market Share (%)

2Q17-2Q16 Growth (%)

HPE

3,204,569,547

23.0

3,536,530,453

26.1

-9.4

Dell EMC

2,776,347,626

19.9

2,594,180,873

19.1

7.0

IBM

963,279,264

6.9

1,226,947,968

9.1

-21.5

Cisco

866,450,000

6.2

858,924,000

6.3

0.9

Huawei

845,543,611

6.1

535,946,936

4.0

57.8

Others

5,281,754,345

37.9

4,801,420,134

35.4

10.0

Total

13,937,944,394

100.0

13,553,950,355

100.0

2.8

Source: Gartner (September 2017)

In server shipments, Dell EMC maintained the No. 1 position in the second quarter of 2017 with 17.5 percent market share (see Table 2). HPE secured the second spot with 17.1 percent of the market. Inspur Electronics experienced the highest growth in shipments with 31.5 percent, followed by Huawei with 26.1 percent growth.

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

Company

2Q17

Shipments

2Q17 Market Share (%)

2Q16

Shipments

2Q16 Market Share (%)

2Q17-2Q16 Growth (%)

Dell EMC

492,854

17.5

529,135

19.2

-6.9

HPE

483,203

17.1

529,488

19.2

-8.7

Huawei

176,426

6.2

139,866

5.1

26.1

Inspur Electronics

158,373

5.6

120,417

4.4

31.5

Lenovo

145,655

5.2

235,267

8.5

-38.1

Others

1,367,176

48.4

1,203,525

43.6

13.6

Total

2,823,688

100.0

2,757,698

100.0

2.4

Source: Gartner (September 2017)

Additional information is available to subscribers of the Gartner Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, subbrand, CPU type, CPU group, max CPU, platform, price band, operating systems and distribution channels.

Gartner analysts will provide additional analysis data center and IT operations trends at the Gartner Global Infrastructure & Operations events November 27-28, 2017 in London, December 4-7, 2017 in Las Vegas and May 15-17, 2018 in Orlando. Follow news and updates from these events on Twitter using #GartnerIO.

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company. The company helps business leaders across all major functions in every industry and enterprise size with the objective insights they need to make the right decisions. Gartner’s comprehensive suite of services delivers strategic advice and proven best practices to help clients succeed in their mission-critical priorities. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has more than 13,000 associates serving clients in 11,000 enterprises in 100 countries. For more information, visit www.gartner.com.

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Gartner Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

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