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Worldwide server revenue grew 17.8 per cent in the Q4 of 2018: Gartner

March 19, 2019 • General

Worldwide Server Revenue Grew 17.8 Percent in the Fourth Quarter of 2018: Gartner

The worldwide server market continued to grow through 2018 as worldwide server revenue increased 17.8 per cent in the fourth quarter of 2018, while shipments grew 8.5 per cent year over year, according to Gartner, Inc. In all of 2018, worldwide server shipments grew 13.1 per cent and server revenue increased 30.1 per cent compared with full-year 2017.

“Hyperscale and service providers continued to increase their investments in their data centres (albeit at lower levels than at the start of 2017) to meet customers’ rising service demand, as well as enterprises’ services purchases from cloud providers,” said Kiyomi Yamada, senior principal analyst at Gartner. “To exploit data centre infrastructure market disruption, technology product managers for server providers should prepare for continued increases in server demand through 2019, although growth will be a slower pace than in 2018.”

“DRAM prices started to come down, increasing demand for memory-rich configurations to support emerging workloads such as artificial intelligence (AI) and analytics kept buoying server prices. Product managers should market higher memory content servers to take advantage of DRAM oversupplies.”

Dell EMC secured the top spot in the worldwide server market based on revenue in the fourth quarter of 2018. Dell EMC ended the year with 20.2 per cent market share, followed by Hewlett Packard Enterprise (HPE) with 17.7 per cent of the market. Huawei experienced the strongest growth in the quarter, growing 45.9 per cent.

In server shipments, Dell EMC maintained the No. 1 position in the fourth quarter of 2018 with 16.7 percent market share. HPE secured the second spot with 12.2 percent of the market. Both Dell EMC and HPE experienced declines in server shipments, while Inspur Electronics experienced the strongest growth with a 24.6 percent increase in shipments in the fourth quarter of 2018.

The x86 server market increased in revenue by 27.1 percent, and shipments were up 8.7 percent in the fourth quarter of 2018.

Edited by Neo Sesinye
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