According to the International Data Corporation (IDC)
Worldwide
Quarterly Server Tracker, vendor revenue in the worldwide server
market increased 4.4% year over year to $19.8 billion during the first
quarter of 2019 (1Q19). Worldwide server shipments declined 5.1% year
over year to just under 2.6 million units in 1Q19.
The overall server market slowed in 1Q19 after experiencing six
consecutive quarters of double-digit revenue growth although pockets of
robust growth remain. Volume server revenue increased by 4.2% to $16.7
billion, while midrange server revenue grew 30.2% to $2.1 billion.
High-end systems contracted steeply for a second consecutive quarter,
declining 24.7% year over year to $976 million.
“Demand from both enterprise buyers and hyperscale companies purchasing
through ODMs was less voracious than in previous quarters; coupled with
a difficult compare period from a year ago, this impacted the pace of
market growth during the first quarter,” said Sebastian
Lagana, research manager, Infrastructure Platforms and Technologies
at IDC. “This was most evident in declining unit shipments during the
quarter, although year-to-year average selling price (ASP) increases
supported revenue growth for many vendors. As long as demand for richly
configured servers supports further ASP growth, the market will offset
slight declines in unit volume.”
Overall Server Market Standings, by Company
The number 1 position in the worldwide server market during 1Q19 was
Dell Technologies with 20.2% revenue share, followed by HPE/New H3C
Group, with 17.8% revenue share. Dell Technologies grew revenues 8.9%
year over year while HPE/New H3C Group increased revenues 0.2%. Tied*
for the number 3 position during the quarter were Inspur/Inspur Power
Systems, Lenovo, and Cisco, generating 6.2%, 5.7%, and 5.3% share total
server revenues, respectively. Inspur/Inspur Power Systems increased its
revenue 36.4% year over year; Lenovo grew its revenue 3.9% year over
year; and Cisco increased its revenue 6.9% year over year. The ODM
Direct group of vendors accounted for 23.0% of total market revenue and
declined -1.0% year over year to $4.55 billion.
|
Top 5 Companies, Worldwide Server Vendor Revenue, Market Share, |
|||||||||||||||
| Company |
1Q19 |
1Q19 |
1Q18 |
1Q18 |
1Q19/1Q18 |
||||||||||
| 1. Dell Technologies | $3,993.2 | 20.2% | $3,666.0 | 19.3% | 8.9% | ||||||||||
| 2. HPE/New H3C Groupa | $3,518.3 | 17.8% | $3,509.9 | 18.5% | 0.2% | ||||||||||
| T3. Inspur/Inspur Power Systems* b | $1,219.9 | 6.2% | $894.4 | 4.7% | 36.4% | ||||||||||
| T3. Lenovo* | $1,131.8 | 5.7% | $1,088.9 | 5.7% | 3.9% | ||||||||||
| T3. Cisco* | $1,047.7 | 5.3% | $980.1 | 5.2% | 6.9% | ||||||||||
| ODM Direct | $4,549.3 | 23.0% | $4,594.5 | 24.2% | -1.0% | ||||||||||
| Rest of Market | $4,344.3 | 21.9% | $4,229.8 | 22.3% | 2.7% | ||||||||||
| Total | $19,804.5 | 100% | $18,963.7 | 100% | 4.4% | ||||||||||
| Source: IDC Worldwide Quarterly Server Tracker, June 5, 2019 | |||||||||||||||
Notes:
* IDC declares a statistical tie in the worldwide server market
when there is a difference of one percent or less in the share of
revenues or shipments among two or more vendors.
a Due to the existing joint venture between HPE and
the New H3C Group, IDC will be reporting external market share on a
global level for HPE and New H3C Group as “HPE/New H3C Group” starting
from 2Q 2016.
b Due to the existing joint venture between IBM and
Inspur, IDC will be reporting external market share on a global level
for Inspur and Inspur Power Systems as “Inspur/Inspur Power Systems”
starting from 3Q 2018.
In addition to the table above, a graphic illustrating worldwide market
share based on revenues for the top 5 server companies over the previous
five quarters is available by viewing this
press release on IDC.com.
Dell Technologies led the worldwide server market in terms of unit
shipments, accounting for 20.0% of all units shipped during the quarter.
|
Top 5 Companies, Worldwide Server Unit Shipments, Market Share, |
|||||||||||||||
| Company |
1Q19 Unit |
1Q19 |
1Q18 Unit |
1Q18 |
1Q19/1Q18 |
||||||||||
| 1. Dell Technologies | 517.0 | 20.0% | 555.8 | 20.4% | -7.0% | ||||||||||
| 2. HPE/New H3C Groupa | 406.0 | 15.7% | 455.8 | 16.7% | -10.9% | ||||||||||
| 3. Inspur/Inspur Power Systemsb | 204.9 | 7.9% | 175.0 | 6.4% | 17.0% | ||||||||||
| T4. Super Micro* | 138.1 | 5.3% | 156.2 | 5.7% | -11.6% | ||||||||||
| T4. Lenovo* | 135.8 | 5.3% | 160.7 | 5.9% | -15.5% | ||||||||||
| T4. Huawei* | 125.5 | 4.9% | 128.1 | 4.7% | -2.1% | ||||||||||
| ODM Direct | 651.4 | 25.2% | 691.1 | 25.4% | -5.7% | ||||||||||
| Rest of Market | 403.4 | 15.6% | 398.7 | 14.7% | 1.2% | ||||||||||
| Total | 2,582.0 | 100% | 2,721.4 | 100% | -5.1% | ||||||||||
| Source: IDC Worldwide Quarterly Server Tracker, June 5, 2019 | |||||||||||||||
Notes:
* IDC declares a statistical tie in the worldwide server market
when there is a difference of one percent or less in the share of
revenues or shipments among two or more vendors.
a Due to the existing joint venture between HPE and
the New H3C Group, IDC will be reporting external market share on a
global level for HPE and New H3C Group as “HPE/New H3C Group” starting
from 2Q 2016.
b Due to the existing joint venture between IBM and
Inspur, IDC will be reporting external market share on a global level
for Inspur and Inspur Power Systems as “Inspur/Inspur Power Systems”
starting from 3Q 2018.
Top Server Market Findings
On a geographic basis, Japan was the fastest growing region in 1Q19 with
9.8% year-over-year revenue growth. Asia/Pacific (excluding Japan) grew
7.4% during the quarter, while Europe, the Middle East and Africa (EMEA)
grew 4.1% on aggregate. The United States grew 3.5%; Canada declined
9.6%; and Latin America contracted 14.9%. China saw its 1Q19 vendor
revenues grow 11.4% year over year.
Demand for x86 servers increased 6.0% in 1Q19 to $18.5 billion in
revenue. Non-x86 servers contracted -13.7% year over year to $1.3
billion.
IDC’s Server Taxonomy
IDC’s Server Taxonomy maps the eleven price bands within the server
market into three price ranges: volume servers, midrange servers and
high-end servers. The revenue data presented in this release is stated
as vendor revenue for a server system. IDC presents data in vendor
revenue to determine market share position. Vendor revenue represents
those dollars recognized by multi-user system and server vendors for ISS
(initial server shipment) and upgrade units sold through direct and
indirect channels and includes the following embedded server components:
Frame or cabinet and all cables, processors, memory, communications
boards, operating system software, other bundled software and initial
internal and external disk shipments.
IDC’s Quarterly
Server Tracker is a quantitative tool for analyzing the global
server market on a quarterly basis. The Tracker includes quarterly unit
shipments and revenues (both vendor revenue and value of shipments),
segmented by vendor, family, model, region, operating system, price
band, CPU type, and architecture.
For more information about IDC’s Worldwide Quarterly Server Tracker,
please contact Lidice Fernandez at 305-351-3057 or lfernandez@idc.com.
About IDC Trackers
IDC
Tracker products provide accurate and timely market size, vendor
share, and forecasts for hundreds of technology markets from more than
100 countries around the globe. Using proprietary tools and research
processes, IDC’s Trackers are updated on a semiannual, quarterly, and
monthly basis. Tracker results are delivered to clients in user-friendly
excel deliverables and on-line query tools.
About IDC
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