Worldwide Server Revenue Grew 16% in the Third Quarter of 2017; Shipments Grew 5.1 %.
In the third quarter of 2017, worldwide server revenue increased 16 per cent year over year, while shipments grew 5.1 per cent from the second quarter of 2016, according to Gartner, Inc.
"The third quarter of 2017 produced continued growth on a global level with varying regional results," said Jeffrey Hewitt, research vice president at Gartner. "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."
"x86 servers increased 5.3 per cent in shipments for the year and 16.7 per cent in revenue in the third quarter of 2017.
RISC/ltanium Unix servers declined globally, down 23.5 per cent in shipments and 18.3 per cent in vendor revenue compared with the same quarter last year. The 'other' CPU category, which is primarily mainframes, showed a decline/increase of 54.5 per cent," Mr Hewitt said.
Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue. Despite a decline of 3.2 per cent, the company posted $3.1 billion in revenue for a total share of 21 per cent for the third quarter of 2017. Dell EMC maintained the No. 2 position with 37.9 per cent growth and 20.8 per cent market share. Inspur Electronics experienced the highest growth in the quarter with I 16.6 per cent, driven by ongoing sales into China-based cloud providers, as well as global expansion efforts.
In server shipments, Dell EMC maintained the No. I position in the third quarter of 2017 with 17.8 per cent market share. HPE secured the second spot with 16.4 per cent of the market. Inspur Electronics was the only vendor in the top five to experience positive growth in the quarter.
Europe, the Middle East and Africa (EMEA)
In the third quarter of 2017, server revenue in EMEA totaled $3.1 billion, a 17.1 per cent increase from the third quarter of 2016. Server shipments totaled 495 thousand units, a growth of 2.9 per cent year over year.
"On the surface, the EMEA server market has some positive results at last," said Adrian O'Connell, research director at Gartner. "However, the increased price of certain components due to supply shortages was the main driver of the revenue growth, as vendors passed increased costs on to users."
In revenue terms, all of the top five vendors benefited from this growth in the third quarter of 2017. HPE maintained the No. I position, but...