Gartner: Local server revenue up by a quarter, shipments down
Gartner today announced the worldwide server market revenue increased 17.8% in the fourth quarter of 2018, while shipments grew 8.5% year over year. For the full year 2018, shipments grew 13.1% and revenue increased 30.1% compared with full year 2017.
In Australia, server revenue increased 24.7% in the fourth quarter of 2018, while shipments declined 5.3% year over year. For the full year 2018, server shipments grew only slightly while revenue increased 22.8% compared with full year 2017.
Server Shipments and Revenue (A$) – Australia
|
Data |
2017 Q4 |
2017 YR Total |
2018 Q4 |
2018 YR Total |
|
Sum of Vendor Revenue |
239,942,862 |
854,324,982 |
299,272,630 |
1,049,259,757 |
|
Sum of Units |
22,932 |
84,066 |
21,722 |
84,599 |
Source: Gartner (March 2019)
"Hyperscale and service providers continued to increase their investments in their data centers (albeit at lower levels than at the start of 2017) to meet customers' rising service demand, as well as enterprises' services purchases from cloud providers," says Gartner senior principal analyst Kiyomi Yamada.
"To exploit data center infrastructure market disruption, technology product managers for server providers should prepare for continued increases in server demand through 2019, although growth will be a slower pace than in 2018.
"DRAM prices started to come down, increasing demand for memory-rich configurations to support emerging workloads such as artificial intelligence (AI) and analytics kept buoying server prices. Product managers should market higher memory content servers to take advantage of DRAM oversupplies.
Dell EMC secured the top spot in the worldwide server market based on revenue in the fourth quarter of 2018.
Dell EMC ended the year with 20.2% market share, followed by Hewlett Packard Enterprise (HPE) with 17.7% of the market.
Huawei experienced the strongest growth in the quarter, growing 45.9%.
Worldwide: Server Vendor Revenue Estimates, 4Q18 (U.S. Dollars)
|
Company |
4Q18 Revenue |
4Q18 Market Share (%) |
4Q17 Revenue |
4Q17 Market Share (%) |
4Q18-4Q17 Growth (%) |
|
Dell EMC |
4,426,376,116 |
20.2 |
3,606,976,178 |
19.4 |
22.7 |
|
HPE |
3,876,819,483 |
17.7 |
3,578,005,770 |
19.3 |
8.4 |
|
Huawei |
1,815,071,726 |
8.3 |
1,244,382,075 |
6.7 |
45.9 |
|
Inspur Electronics |
1,801,622,141 |
8.2 |
1,260,671,411 |
6.8 |
42.9 |
|
IBM |
1,783,691,221 |
8.2 |
2,623,501,533 |
14.1 |
-32.0 |
|
Others |
8,158,910,239 |
37.3 |
6,243,556,262 |
33.6 |
30.7 |
|
Total |
21,862,491,037 |
100.0 |
18,556,994,228 |
100.0 |
17.8 |
Source: Gartner (March 2019)
In server shipments, Dell EMC maintained the No. 1 position in the fourth quarter of 2018 with 16.7% market share (see Table 2).
HPE secured the second spot with 12.2% of the market. Both Dell EMC and HPE experienced declines in server shipments, while Inspur Electronics experienced the strongest growth with a 24.6% increase in shipments in the fourth quarter of 2018.
Worldwide: Server Vendor Shipments Estimates, 4Q18 (Units)
|
Company |
4Q18 Shipments |
4Q18 Market Share (%) |
4Q17 Shipments |
4Q17 Market Share (%) |
4Q18-4Q17 Growth (%) |
|
Dell EMC |
580,580 |
16.7 |
582,720 |
18.3 |
-0.4 |
|
HPE |
424,347 |
12.2 |
443,854 |
13.9 |
-4.4 |
|
Inspur Electronics |
293,702 |
8.5 |
235,658 |
7.4 |
24.6 |
|
Huawei |
260,193 |
7.5 |
257,916 |
8.1 |
0.9 |
|
Lenovo |
191,032 |
5.5 |
181,523 |
5.7 |
5.2 |
|
Others |
1,723,032 |
49.6 |
1,499,593 |
46.8 |
14.9 |
|
Total |
3,472,886 |
100.0 |
3,201,264 |
100.0 |
8.5 |
Source: Gartner (March 2019)
The x86 server market increased in revenue by 27.1%, and shipments were up 8.7% in the fourth quarter of 2018.
In terms of regional results, in 2018, Asia Pacific and North America posted strong growth in revenue with 38.3% and 34%, respectively.
In terms of shipments, Asia Pacific grew 17.6% and North America grew 15.9% year over year.
