Scrapping For Share As The Market Slows
Dell EMC was the only major vendor to notch server revenue and shipment growth in the first quarter as a market waiting for the next major processor and moving away from high-end hardware handed Cisco, Hewlett Packard Enterprise and Lenovo declines that were in some cases dramatic.
Worldwide server revenue declined 4.6 percent year over year in the first quarter, according to research firm IDC. IDC said the slowdown is the result of customers, especially hyper-scale service providers, waiting for Intel's new Skylake processors to hit the market later this year, as well as dramatically rising memory prices and the market's continued move away from high-end servers.
Server shipments were up 1.4 percent year over year during the quarter, according to IDC. Dell EMC saw minimal growth in shipments, while Chinese data center upstarts Huawei and Inspur both increased shipments by double digits year over year.