Story image

HPE clings on to top spot in server market from looming Dell EMC

13 Dec 2017

​Bucking the decline of the first quarter, the global server market saw positive growth in the third quarter of 2017.

According to Gartner, revenue increased 16 percent year over year while shipments grew 5.1 percent from the third quarter of 2016 in what is the second consecutive quarter of growth in the server market.

"The third quarter of 2017 produced continued growth on a global level with varying regional results. A build-out of infrastructure to support cloud and hybrid-cloud implementations was the main driver for growth in the server market for the period,” says Jeffrey Hewitt, research vice president at Gartner.

"x86 servers increased 5.3 percent in shipments for the year and 16.7 percent in revenue in the third quarter of 2017. RISC/Itanium Unix servers declined globally, down 23.5 percent in shipments and 18.3 percent in vendor revenue compared with the same quarter last year. The 'other' CPU category, which is primarily mainframes, showed an increase of 54.5 percent.”

This is positive news for all involved given the decline in the first quarter of this year where worldwide server revenue fell 4.5 percent year over year while shipments dropped 4.2 percent from the first quarter of 2016.

"The first quarter of 2017 showed declines on a global level with a slight variation in results by region. Asia Pacific [APAC] bucked the trend and posted growth while all other regions fell,” says Hewitt.

"Although purchases in the hyperscale data centre segment have been increasing, the enterprise and SMB segments remain constrained as end users in these segments accommodate their increased application requirements through virtualisation and consider cloud alternatives.”

Despite a decline of 3.2 percent, Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue, posting US$3.1 billion for a total share of 21 percent for the third quarter of 2017.

Dell EMC is literally nipping at HPE’s heels in second place with a 20.8 percent market share after growing 37.9 percent. The biggest mover and shaker of the market in terms of revenue was Inspur Electronics, growing a whopping 116.6 percent that Gartner says is being driven by ongoing sales into China-based cloud providers, as well as global expansion.

In the matter of server shipments, Dell EMC maintained the top spot with 17.8 percent market share. HPE held on to second position with a 16.4 percent share of the market. Again, Inspur Electronics has the most to be happy about as the only vendor in the top five to experience positive growth for the quarter.

Gartner believes the continued positive growth in APAC comes down to the region’s aptitude for hybrid cloud and virtualisation .

Dropbox invests in hosting data inside Australia
Global collaboration platform Dropbox has announced it will now host Australian customer files onshore to support its growing base in the country.
Opinion: Meeting the edge computing challenge
Scale Computing's Alan Conboy discusses the importance of edge computing and the imminent challenges that lie ahead.
Alibaba Cloud discusses past and unveils ‘strategic upgrade’
Alibaba Group's Jeff Zhang spoke about the company’s aim to develop into a more technologically inclusive platform.
Protecting data centres from fire – your options
Chubb's Pierre Thorne discusses the countless potential implications of a data centre outage, and how to avoid them.
Opinion: How SD-WAN changes the game for 5G networks
5G/SD-WAN mobile edge computing and network slicing will enable and drive innovative NFV services, according to Kelly Ahuja, CEO, Versa Networks
TYAN unveils new inference-optimised GPU platforms with NVIDIA T4 accelerators
“TYAN servers with NVIDIA T4 GPUs are designed to excel at all accelerated workloads, including machine learning, deep learning, and virtual desktops.”
AMD delivers data center grunt for Google's new game streaming platform
'By combining our gaming DNA and data center technology leadership with a long-standing commitment to open platforms, AMD provides unique technologies and expertise to enable world-class cloud gaming experiences."
Inspur announces AI edge computing server with NVIDIA GPUs
“The dynamic nature and rapid expansion of AI workloads require an adaptive and optimised set of hardware, software and services for developers to utilise as they build their own solutions."