Gartner Says Worldwide Server Revenue Declined 0.8 Percent in the Second Quarter of 2016

In the second quarter of 2016, worldwide server revenue declined 0.8 percent year over year, while shipments grew 2 percent from the second quarter of 2015, according to Gartner, Inc. There was some shuffling among the top vendors in the second quarter, as Dell moved into the top spot in shipments, while Hewlett Packard Enterprise (HPE) remained the worldwide leader in server revenue.

Jeffrey Hewitt, research vice president at Gartner, said, “The second quarter of 2016 produced some continued growth on a global level compared with the first quarter, although there were some varied results regionally. All regions showed a decline in shipments except Asia/Pacific and North America, which posted growth of 5.6 percent and 3 percent, respectively. In terms of revenue, all regions except for Asia/Pacific and Eastern Europe exhibited a decline. Asia/Pacific grew by 6.1 percent and Eastern Europe posted 1 percent growth. Variations of growth by data center segments and exchange rate issues are the main reasons for these results.”

“x86 servers grew 2.1 percent in shipments and 5.8 percent in revenue in the second quarter of 2016. Dell garnered 19.3 percent of the market and moved into the No. 1 position in worldwide server shipments primarily due to growth resulting from programs it has in place in the Asia/Pacific region, most notably in China. However, HPE continued to lead the x86 market in revenue with 26 percent of the market,” said Mr. Hewitt.

Despite a decline of 6.4 percent, HPE continued to lead in the worldwide server market, based on revenue, with 23.7 percent market share (see Table 1). Dell grew 9.9 percent and maintained the second spot in the market with 19.1 percent market share. IBM secured the third position with 9.1 percent of the market but experienced the largest decline among the top five vendors.

Table 1
Worldwide: Server Vendor Revenue Estimates, 2Q16 (U.S. Dollars)

Company 2Q16

Revenue

2Q16 Market Share (%) 2Q15

Revenue

2Q15 Market Share (%) 2Q16-2Q15 Growth (%)
HPE 3,208,997,829 23.7 3,428,089,692 25.1 -6.4
Dell 2,594,180,873 19.1 2,361,553,746 17.3 9.9
IBM 1,226,947,968 9.1 1,869,261,145 13.7 -34.4
Lenovo 968,175,316 7.1 949,775,893 7.0 1.9
Cisco 858,924,000 6.3 866,700,000 6.3 -0.9
Others 4,695,515,875 34.6 4,180,263,723 30.6 12.3
Total 13,552,741,861 100.0 13,655,644,198 100.0 -0.8

Source: Gartner (September 2016)

Due to its success in the x86 market, Dell moved into the No. 1 position in server shipments in the second quarter of 2016, with 8.9 percent growth, garnering 19.2 percent market share (see Table 2). HPE dropped to the second spot with 17.2 percent shipment share, representing an 18.7 percent decline year over year.

Table 2
Worldwide: Server Vendor Shipment Estimates, 2Q16 (Units)

Company 2Q16

Shipments

2Q16 Market Share (%) 2Q15

Shipments

2Q15 Market Share (%) 2Q16-2Q15 Growth (%)
Dell 529,135 19.2 485,745 18.0 8.9
HPE 474,803 17.2 583,790 21.6 -18.7
Lenovo 235,267 8.5 222,206 8.2 5.9
Huawei 139,866 5.1 122,565 4.5 14.1
Inspur 120,417 4.4 82,032 3.0 46.8
Others 1,258,045 45.6 1,207,005 44.6 4.2
Total 2,757,532 100.0 2,703,344 100.0 2.0

Source: Gartner (September 2016)

Additional information is available to clients who have access to Gartner’s Servers Quarterly Statistics. This database 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 system and distribution channel.

@Technuter.com News Service

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