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Dell and HPE head of the pack in ‘shuffling’ server market

15 Sep 16

There’s some shuffling going on amongst vendors in the global server market, with Dell taking the top spot on shipments while Hewlett Packard Enterprise (HPE) remained the worldwide leader in server revenue.

According to new figures released by Gartner, the second quarter of 2016 saw global server revenue decline by 0.8% year over year, while shipments grew 2% from 2Q16.

"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," explains Jeffrey Hewitt, research vice president at Gartner.

"All regions showed a decline in shipments except Asia/Pacific and North America, which posted growth of 5.6% and 3%, respectively,” he says.

In terms of revenue, all regions except for Asia/Pacific and Eastern Europe exhibited a decline, Gartner reveals.

Asia/Pacific grew by 6.1% and Eastern Europe posted 1% growth. Variations of growth by data center segments and exchange rate issues are the main reasons for these results.

"x86 servers grew 2.1% in shipments and 5.8% in revenue in the second quarter of 2016. Dell garnered 19.3% of the market and moved into the No. 1 position in worldwide server shipments due primarily to growth resulting from programs it has in place in the Asia/Pacific region, most notably in China,” Hewitt says.

“However, HPE continued to lead the x86 market in revenue with 26% of the market.”

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

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Gartner says Dell moved into the No. 1 position in server shipments in the second quarter of 2016, with 8.9%growth, garnering 19.2%market share, due to its success in the x86 market.

HPE dropped to the second spot with 17.2% shipment share, representing an 18.7% decline year over year.

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