Story image

HPE clings on to top spot in server market from looming Dell EMC

13 Dec 2017

​Bucking the decline of the first quarter, the global server market saw positive growth in the third quarter of 2017.

According to Gartner, revenue increased 16 percent year over year while shipments grew 5.1 percent from the third quarter of 2016 in what is the second consecutive quarter of growth in the server market.

"The third quarter of 2017 produced continued growth on a global level with varying regional results. A build-out of infrastructure to support cloud and hybrid-cloud implementations was the main driver for growth in the server market for the period,” says Jeffrey Hewitt, research vice president at Gartner.

"x86 servers increased 5.3 percent in shipments for the year and 16.7 percent in revenue in the third quarter of 2017. RISC/Itanium Unix servers declined globally, down 23.5 percent in shipments and 18.3 percent in vendor revenue compared with the same quarter last year. The 'other' CPU category, which is primarily mainframes, showed an increase of 54.5 percent.”

This is positive news for all involved given the decline in the first quarter of this year where worldwide server revenue fell 4.5 percent year over year while shipments dropped 4.2 percent from the first quarter of 2016.

"The first quarter of 2017 showed declines on a global level with a slight variation in results by region. Asia Pacific [APAC] bucked the trend and posted growth while all other regions fell,” says Hewitt.

"Although purchases in the hyperscale data centre segment have been increasing, the enterprise and SMB segments remain constrained as end users in these segments accommodate their increased application requirements through virtualisation and consider cloud alternatives.”

Despite a decline of 3.2 percent, Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue, posting US$3.1 billion for a total share of 21 percent for the third quarter of 2017.

Dell EMC is literally nipping at HPE’s heels in second place with a 20.8 percent market share after growing 37.9 percent. The biggest mover and shaker of the market in terms of revenue was Inspur Electronics, growing a whopping 116.6 percent that Gartner says is being driven by ongoing sales into China-based cloud providers, as well as global expansion.

In the matter of server shipments, Dell EMC maintained the top spot with 17.8 percent market share. HPE held on to second position with a 16.4 percent share of the market. Again, Inspur Electronics has the most to be happy about as the only vendor in the top five to experience positive growth for the quarter.

Gartner believes the continued positive growth in APAC comes down to the region’s aptitude for hybrid cloud and virtualisation .

Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.
Poly appoints new A/NZ managing director, Andy Hurt
“We’re excited to be bringing together two established pioneers in audio and video technology to be moving forward and one business – Poly."