[September 12, 2017] |
|
Worldwide Server Market Revenue Jumps 6.3% in the Second Quarter Driven by Strong Hyperscale Shipments, According to IDC
According to the International Data Corporation (IDC)
Worldwide
Quarterly Server Tracker, vendor revenue in the worldwide server
market increased 6.3% year over year to $15.7 billion in the second
quarter of 2017 (2Q17). Overall server market growth rebounded after
several slow quarters as much of the market had been waiting for
availability of Intel's (News - Alert) new Skylake processors. While demand from cloud
service providers propped up overall market performance, many other
areas of the server market are still stagnant. Worldwide server
shipments increased 1.9% year over year to 2.45 million units in 2Q17.
Volume server revenue increased by 8.3% to $12.9 billion, while midrange
server revenue grew 19.6% to $1.5 billion. Demand for high-end systems
experienced a year-over-year revenue decline of 18.9% to $1.3 billion.
IDC expects continued long-term secular declines in high-end system
revenue.
"Hyperscalers as a group made a large deployment push in the second
quarter led by Amazon, which alone accounted for more than 10% of server
units shipped in the quarter," said Kuba
Stolarski, research director, Computing Platforms at IDC. "As
hyperscalers tend to lead the market on most architectural updates, we
expect the rest of the market to catch up over the next several
quarters. As the market cycles through this refresh, we are seeing
changes in vendor portfolios with new modular system designs and a
greater focus on accelerator technologies, as well as the continued
evolution of the role of cloud services in corporate IT."
Overall Server Market Standings, by Company HPE/New
H3C Group remained first in the worldwide server market with 21.3%
market share in 2Q17, as revenue decreased 8.4% year over year to $3.3
billion. HPE's share and year-over-year growth rate includes revenues
from the H3C joint venture in China that began in May of 2016; thus, the
reported HPE/New H3C Group combines server revenue for both companies
globally. Dell (News - Alert) Inc maintained the second position in the worldwide
server market with 17.7% of vendor revenue for the quarter and 7.0%
year-over-year growth to $2.8 billion. IBM and Cisco (News - Alert) were statistically
tied for the third market position. IBM had 6.6% share, with revenue
declining 20.8% year over year to $1.0 billion. Cisco had 5.6% share,
with revenue increasing 1.7% to $875 million. Lenovo was ranked fifth
with 5.3% share and revenue declining 13.9% to $834 million. The ODM
Direct group of vendors grew revenue by 48.1% to $3.5 billion.
|
Top 5 Companies, Worldwide Server Vendor Revenue, Market Share,
and Growth, Second Quarter of 2017 (Revenues are in Millions)
|
Company
|
|
|
|
2Q17 Revenue
|
|
|
|
2Q17 Market Share
|
|
|
|
2Q16 Revenue
|
|
|
|
2Q16 Market Share
|
|
|
|
2Q17/2Q16 Revenue Growth
|
1. HPE / New H3C Group**
|
|
|
|
$3,348.5
|
|
|
|
21.3%
|
|
|
|
$3,654.4
|
|
|
|
24.7%
|
|
|
|
-8.4%
|
2. Dell Inc
|
|
|
|
$2,776.2
|
|
|
|
17.7%
|
|
|
|
$2,594.2
|
|
|
|
17.6%
|
|
|
|
7.0%
|
3. IBM (News - Alert)*
|
|
|
|
$1,042.7
|
|
|
|
6.6%
|
|
|
|
$1,316.2
|
|
|
|
8.9%
|
|
|
|
-20.8%
|
3. Cisco*
|
|
|
|
$874.9
|
|
|
|
5.6%
|
|
|
|
$860.3
|
|
|
|
5.8%
|
|
|
|
1.7%
|
5. Lenovo
|
|
|
|
$834.1
|
|
|
|
5.3%
|
|
|
|
$969.2
|
|
|
|
6.6%
|
|
|
|
-13.9%
|
ODM Direct***
|
|
|
|
$3,545.3
|
|
|
|
22.6%
|
|
|
|
$2,393.7
|
|
|
|
16.2%
|
|
|
|
48.1%
|
Others
|
|
|
|
$3,294.9
|
|
|
|
21.0%
|
|
|
|
$2,990.3
|
|
|
|
20.2%
|
|
|
|
10.2%
|
Total
|
|
|
|
$15,716.6
|
|
|
|
100.0%
|
|
|
|
$14,778.2
|
|
|
|
100.0%
|
|
|
|
6.3%
|
IDC's Worldwide Quarterly Server Tracker, September 2017
|
|
Notes:
* IDC declares a statistical tie in the worldwide server market
when there is a difference of one percent or less in the share of
revenues or shipments among two or more vendors.
** Due to the existing joint venture between HPE and the New H3C
Group, IDC will be reporting external market share on a global level for
HPE as "HPE/New H3C Group" starting from 2Q 2016 and going forward.
*** For this release of the Server Tracker, IDC has completed a
historical revision of the ODM Direct revenue data going back to 2013,
resulting in an average increase in reported revenue of over $1 billion
in each quarter.
In addition to the table above, a graphic illustrating worldwide revenue
market share for the top 5 server companies over the previous five
quarters is available by viewing this
press release on IDC.com.
"ODM shipments continue to gain share as large datacenters find it
attractive to custom build their server designs at attractive volume
prices. Demand for two-socket form factors continues to control a
majority of unit shipments now and going forward as they are the sweet
spot for density-optimized servers which are used in datacenters," said Lloyd
Cohen, director of Worldwide Market Analysis, Computing Platforms at
IDC. "Two-socket machines are attractive for datacenter deployment in
terms of both power usage and cost per server."
Top Server Market Findings
-
On a geographic basis, Central and Eastern Europe (CEE) was the
fastest growing region with 13.5% year-over-year growth, followed by
Asia/Pacific (excluding Japan) with 12.9%. Within Asia/Pacific, China
had strong growth of 10.3%. The United States increased 7.1%, Japan
declined 2.2%, Western Europe increased 2.7%, Latin America declined
11.5%, and Middle East and Africa declined 3.3%.
-
Demand for x86 servers increased 10.4% in 2Q17 with $14.3 billion in
revenues. Non-x86 servers declined 21.5% year over year to $1.5
billion.
-
HPE and Dell Inc were in a statistical tie for first place in unit
share, with 20.7% and 20.1% share of worldwide shipments, respectively.
-
IDC initiated reporting Super Micro results in the Server Tracker with
this release. Super Micro grew 49.8% year over year in 2Q'17 to $448
million and 2.9% market revenue share.
IDC's Server Taxonomy IDC's Server Taxonomy maps the
eleven price bands within the server market into three price ranges:
volume servers, midrange servers and high-end servers. The revenue data
presented in this release is stated as vendor revenue for a server
system. IDC presents data in vendor revenue to determine market share
position. Vendor revenue represents those dollars recognized by
multi-user system and server vendors for ISS (initial server shipment)
and upgrade units sold through direct and indirect channels and includes
the following embedded server components: Frame or cabinet and all
cables, processors, memory, communications boards, operating system
software, other bundled software and initial internal and external disk
shipments.
IDC's Quarterly
Server Tracker is a quantitative tool for analyzing the global
server market on a quarterly basis. The Tracker includes quarterly unit
shipments and revenues (both vendor revenue and value of shipments),
segmented by vendor, family, model, region, operating system, price
band, CPU type, and architecture. For more information, please contact
Lidice Fernandez at 305-351-3051 or [email protected].
About IDC International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of IDG,
the world's leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter (News - Alert) at @IDC
and LinkedIn.
All product and company names may be trademarks or registered trademarks
of their respective holders.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170912006848/en/
[ Back To TMCnet.com's Homepage ]
|