Story image

Dell and Huawei enjoy lone growth in declining server market

06 Mar 17

​The global server market experienced a decline in the fourth quarter of 2016, according to new figures from Gartner, who says of the top five global vendors, Dell and Huawei were the only ones who exhibited growth.

The analyst firm says revenue declined 1.9% year over year, while shipments fell 0.6% from the fourth quarter of 2015.

In all of 2016, worldwide server shipments grew 0.1%, but server revenue declined 2.7%.

Asia Pacific was the only region to exhibit positive growth in both shipments and revenue in 4Q16, according to Gartner.

All other regions declined, with Latin America experiencing the largest decline in shipments (12.2%, while the Middle East and Africa declined 14.7% in terms of revenue.

"There were some distinct factors that produced the final results for 2016," says Jeffrey Hewitt, research vice president at Gartner.

"Hyperscale data centers (e.g., Facebook, Google) grew and, at the same time, drove some significant server replacements,” he says.

“Enterprises grew at a lower rate as they continued to leverage server applications through virtualisation and in some cases, service providers in the cloud."

Hewlett Packard Enterprise (HPE) led the market based on revenue in the fourth quarter of 2016. The company ended the year with $3.4 billion in revenue for 4Q16 for a total share of 22.9% worldwide. However, revenue was down 11% compared with the same quarter in 2015.

Of the top five global vendors, only Dell and Huawei exhibited growth for the quarter, increasing 1.8% and 88.4%, respectively.

Dell grew 6.5% and moved into the No. 1 position in global server shipments in 4Q16, with 19.1% of the market. HPE experienced a decline of 19.4% and fell to the second spot with 17.2% market share. Huawei experienced the strongest shipment growth in the fourth quarter, increasing 64% over the same period last year.

According to Gartner, x86 server demand increased in revenue by 1.1%, however, shipments declined 0.3% in the fourth quarter of 2016.

In 2016, worldwide server shipments increased 0.1 percent, while revenue declined 2.7 percent.

"x86 servers continue to be the predominant platform used for large-scale data center build-outs across the globe, and the growth of integrated systems (including hyperconverged integrated systems), while still relatively small as an overall percentage of the hardware infrastructure market, also provided a boost to the x86 server space for the year," Hewitt says.

"The outlook for 2017 suggests that modest growth will occur being driven primarily by service provider build-outs while the enterprise will show a slight decline in unit purchases with only slight growth in revenue,” he says.

Hillstone CTO's 2019 security predictions
Hillstone Networks CTO Tim Liu shares what key developments could be expected in the areas of security compliance, cloud, security, AI and IoT.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."
How SMBs can use data to drive business outcomes
With the right technology, companies can capture consumer, sales, and expense data, and use it to evaluate and construct future plans.
Survey shows that IoT is RoI across Asia Pacific
A recent Frost & Sullivan survey across Australia, Hong Kong and Singapore shows that IoT deployment improves business metrics by around 12%.
IDC: Aussie spending on IT Services to hit $23.5B by 2023
the project-oriented market which is predicted to achieve the highest CAGR through to 2023; though no market is expected to decline
Sophos hires ex-McAfee SVP Gavin Struther
After 16 years as the APAC senior vice president and president for McAfee, Struthers is now heading the APJ arm of Sophos.
Security platform provider Deep Instinct expands local presence
The company has made two A/NZ specific leadership hires and formed several partnerships with organisations in the region.