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HPE Gains Server Market Share In Heated Battle With Dell

‘The second quarter saw the server market's first contraction in nine quarters,’ says Sebastian Lagana, IDC research manager for Infrastructure Platforms and Technologies.

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Market Overview: Servers Sales Fall Across The Board

After a long stretch of market growth that drove the server market to record heights, the worldwide market declined for the first time since the fourth quarter of 2016, according to IDC. All classes of servers were impacted.

Year over year, volume server revenue was down 11.7 percent to $16.3 billion, midrange server sales fell 4.6 percent to $2.4 billion and high-end systems lowered nearly 21 percent to $1.3 billion. Total server revenue hit $20.02 billion, down from $22.65 billion during the second quarter of 2018. Revenue generated from x86 servers decreased 10.6 percent to $18.4 billion year over year, while non-x86 servers fell 21.5 percent to $1.6 billion.

Looking at server shipments, vendors shipped a total of 2.7 million servers during the quarter, down from the nearly 3 million shipped in the second quarter 2019.

In terms of geography, the United States was down 19.1 percent year over year, while China saw vendor revenues also decline 8.7 percent. Canada was the fastest growing region in the quarter with 13.4 percent year over year server sales growth, while Europe and EMEA grew 2 percent on aggregate.

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