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Dell, HPE Battle For Server Market Share Leadership

The global vendor server market generated $25.8 billion in total server revenue in the fourth quarter of 2020 with Dell Technologies and HPE leading the way.

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Server Market Overview

Breaking down the server market segments in the fourth quarter 2020, volume server revenue was up 3.7 percent to $20.4 billion year over year. Sales from midrange servers increased 8.4 percent year over year to $3.3 billion, while high-end servers declined by 21.8 percent to $2.1 billion.

Server sales generated from x86 servers in the fourth quarter increased 3 percent to around $23.1 billion, while non-x86 server revenue declined 9 percent year over year to $2.8 billion.

“Blade systems continued to decline, down 18.1 percent while rack optimized servers grew 10.3 percent year over year,” said IDC’s Maguranis. “Similar to the previous quarter, servers running AMD CPUs as well as ARM-based servers continued to grow revenue, increasing 101 percent and 345 percent year over year respectively, albeit on a small but growing base.”

On a geographic basis, China (PRC) was the fastest-growing region with nearly 23 percent year over year revenue growth. Latin America was the only other region with sales growth in the fourth quarter, up 1.5 percent year over year. North America server sales declined 6.2 percent year over year, with Canada down 24 percent and the United Sates dropping 5.5 percent. Both EMEA and Japan declined during the quarter at rates of 1.1 percent and 6.3 percent, respectively.

IDC said it “declares a statistical tie” in the worldwide server market when there is a “difference of one percent or less” in the share of revenues or shipments among two or more vendors. In IDC’s fourth quarter 2020 server market share report, there was a statistical tie between Dell and HPE/New H3C Group, as well as a tie between Lenovo and Huawei.

 
 
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