Hewlett Packard Enterprise (HPE) has retained the lead position in the server market with 24.2 percent share in Q1 2017 – above Dell.
HPE’s server revenue fell 15.8 percent year over year to $2.9 billion. HPE’s share and growth rate includes revenues from the H3C joint venture in China that began in May of 2016.
Dell is the #2 vendor in the server market with 20.1 percent of vendor revenue for the quarter and 4.7 percent year-over-year growth to $2.4 billion.
Cisco had 7 percent share, with revenue declining 3 percent to $825 million.
IBM had 6.3 percent share, with revenue dropping 34.7 percent to $745 million.
Lenovo had 6.2 percent share, with revenue dipping 16.5 percent to $727 million.
The ODM Direct group of vendors grew revenue by 41.8 percent to $1.2 billion.
Server revenue fell 4.6 percent year over year to $11.8 billion in the first quarter of 2017. Server market growth slowed down since most hyperscale service providers are waiting until the second half of the year for deployment of Intel’s new Skylake processors.
DRAM pricing issues impacted the server market. Worldwide server shipments increased 1.4 percent year over year to 2.21 million units in Q1 2017. One customer accounted for more than 10 percent of the servers shipped in Q1 2017.
Volume server revenue declined 3.4 percent to $9.5 billion, while midrange server revenue grew 16.5 percent to $1.3 billion. High-end server revenue declined 29.0 percent to $1 billion. IDC expects continued long-term secular declines in high-end system revenue.
“As the market prepares for the switch to Intel’s Skylake this year, we may be witnessing a shift in how workloads are deployed in the future, and what architectural choices will be made around modularity, operating environments, software, and cloud services,” said Kuba Stolarski, research director, Computing Platforms at IDC.
