Server market revenue increased 33.4 percent to $16.692 billion and shipments grew 17.3 percent to 3.052 million in the first quarter of 2018, according to Gartner.
Gartner said the server market was driven by increases in spending by hyperscale as well as enterprise and midsize data centers.
Enterprises and midsize businesses are in the process of investing in their on-premises and colocation infrastructure to support server replacements and growth requirements even as they continue to invest in public cloud solutions.
Jeffrey Hewitt, research vice president at Gartner, said the increase in the price of server was due to increase in the DRAM prices due to limited supplies.
Dell EMC achieved 51.4 percent growth in the server revenue. The revenue growth helped widen the gap a bit between Dell EMC and Hewlett Packard Enterprise (HPE). Dell EMC has 21.5 percent share in server market. HPE has 19.9 percent share in sever market. Inspur Electronics achieved 120.4 percent growth.
Lenovo is the fourth largest server company in terms of revenue. IBM is the fifth largest server company based on revenue.
In server shipments, Dell EMC maintained the No. 1 position in the first quarter of 2018 with 18.2 percent market share. Despite a decline of 8.5 percent in server shipments, HPE secured the second spot with 13.1 percent of the market.
Huawei is the fourth largest server company in terms of shipment volume.
The x86 server market revenue increased 35.7 percent, and shipments rose 17.5 percent. The RISC/Itanium UNIX market shipment fell 52.8 percent, while revenue declined 46.7 percent, said Gartner.
Research firm Dell’Oro Group said the server market grew 38 percent in Q1 2018, propelled by the Cloud and Enterprise. The Super 7 Cloud Service Providers (CSP) accounted for 36 percent of the worldwide server shipments.
After eight consecutive quarters of year-over-year decline, Enterprise spending on servers finally increased as companies resumed a refresh to the Intel Xeon Scalable server platform.
The top four CSPs — Google, Amazon, Microsoft, and Facebook — consumed most of the 920 thousand white box servers shipped in the quarter, and together drove 31 percent of server shipments.
Though white box servers make up over 50 percent of Cloud shipments, OEM vendors such as Dell and Lenovo are capitalizing on the server market’s shift to Cloud and are gaining market share.