8 Key Points From Gartner's Q4 Server Market Report

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Waiting For The Tide To Come In

A server market that saw growth among hyper-scale users while struggling with traditional enterprise customers looking to virtualization and cloud services drew a clear line between market winners and losers in the fourth quarter, according to stats published by research firm Gartner Thursday.

While Dell EMC and Huawei made gains, perennial server market powerhouse Hewlett Packard Enterprise and China-based PC giant Lenovo suffered steep declines in revenue and shipments as 2016 drew to a close. HPE's declines meant that Dell EMC closed in on the market leader in fourth-quarter server revenue and put distance between itself and second-place HPE in units shipped during the period.

A flat market means hardware vendors have to fight for scraps of share. Hyper-converged systems have given the x86 server market a boost, but hyper-converged systems make up only a small part of the overall infrastructure hardware market, Gartner noted.

Gartner predicts that the server market will see modest growth this year driven by service provider build-outs while purchasing among enterprises slows. Here are eight things to know about the server market right now.

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