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Data centre investment drives worldwide server market up

Revenues and shipment numbers rise significantly in Q1 2018, says Gartner

Data centre investment drives worldwide server market up
The global server market saw data centre demand from big players and enterprise in Q1 2018.

The global server market grew revenues by one third in Q12018, while shipment volumes increase 17.3%, according to Gartner.

Server revenue was up 33.4% to $16.7bn compared to $12.5bn in Q1 2017, with growth driven by data centre spending.

Jeffrey Hewitt, research vice president at Gartner commented: "The server market was driven by increases in spending by hyperscale as well as enterprise and midsize data centres. Enterprises and midsize businesses are in the process of investing in their on-premises and colocation infrastructure to support server replacements and growth requirements even as they continue to invest in public cloud solutions.

"Additionally, when it came to server average selling prices (ASP) increases for the quarter, one driver was the fact that DRAM prices increased due to constrained supplies."

Dell EMC experienced 51.4% growth in the worldwide server market based on revenue in the first quarter of 2018.This growth helped widen the gap a bit between Dell EMC and Hewlett Packard Enterprise (HPE) as Dell EMC ended the quarter in the No. 1 spot with 21.5% market share, followed closely by HPE with 19.9% of the market. Inspur Electronics experienced the strongest growth in the first quarter of 2018 with 120.4% growth.

The x86 server market increased in revenue by 35.7%, and shipments were up 17.5% in the first quarter of 2018. The RISC/Itanium UNIX market continued to struggle with shipments down 52.8%, while revenue declined 46.7%.

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