Thursday, September 21, 2017


Global server revenues hit $14bn pushed by APAC data center expansions



China accounts for the largest number of new build-ups which have helped drive the server market towards a 2.8% growth in Q2 2017.

The server market has continued to deliver consistent growth with revenues increasing 2.8% in Q2 2017 topping $13.94bn for the period, according to Gartner.

The growth of $384m, when compared to Q2 2016, was fostered by Dell EMC, Cisco and Huawei, which registered positive growth margins when compared to other rivals such as HPE or IBM.

In percentage terms, Huawei has outshined every other business, with server revenues increasing 57.8% in Q2 2017 from Q2 2016, reaching $845.54m revenues and a market share of 6.1%.

Huawei’s grow reflects the expanding data centre industry in the Asia Pacific region as new data centre developments drive the acquisition of server hardware up across the continent, especially in China.

However, Huawei is far from the first market shareholder, HPE, which with $3.2bn server revenues amounts to 23% of the market share at the end of the second quarter of 2017. Nonetheless, HPE’s revenues dropped 9.4% in the last quarter, when compared to the same period the year before.

In second place is Dell EMC which is still building up on the back of the multi-billion Dollar merger carried out last year between Dell and EMC. The group grew revenues by 7% from $2.59bn to $2.78bn, with market share of 19.9%.

In third place is IBM, which saw the deepest revenue downfall, with figures pluming 21.5% to below the $1bn revenue mark (Q2 2016: $1.2bn; Q2 2017: $963m).

Cisco follows with a shy growth of 0.9% and revenues topping $866m. Huawei comes in next with the industry’s largest revenue jump.

Lastly, in a category simply labelled as ‘others’, revenues grew 10% from $4.8bn in Q2 2016 to $5.28bn in Q2 2017.

In server shipments, Dell EMC maintained the No. 1 position in the second quarter of 2017 with 17.5% market share.

HPE secured the second spot with 17.1% of the market. Inspur Electronics experienced the highest growth in shipments with 31.5%, followed by Huawei with 26.1% growth.

All in all, server shipments grew 2.4% Q2 2017 vs Q2 2016, from 2,757,697 to 2,823,688.

Jeffrey Hewitt, research vice president at Gartner, said: “The growth for the quarter is attributable to two main factors. The first is strong regional performance in Asia/Pacific because of data centre infrastructure build-outs, mostly in China. The second is ongoing hyperscale data centre growth that is exhibited in the self-build/ODM (original design manufacturer) segment.

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