Server market revenue dips 11.6% to over $20 bn in second quarter

The global server market dropped 11.6 percent to just over $20.0 billion during the second quarter of 2019.
Server market share of Dell and HPEWorldwide server shipments fell 9.3 percent year over year to just under 2.7 million units, the latest IDC research report said.

The global server market fell for the first time since the fourth quarter of 2016. The second quarter saw the server market’s first contraction in nine quarters.

IDC said the volume server revenue dropped 11.7 percent to $16.3 billion, while midrange server revenue declined 4.6 percent to $2.4 billion and high-end systems dipped 20.8 percent to $1.3 billion in Q2 2019.

Factors impacting the server market include a slowdown in purchasing from cloud providers and hyperscale customers, an off-cycle in the cyclical non-x86 market, as well as a slowdown from enterprises due to existing capacity slack and macroeconomic uncertainty, Sebastian Lagana, research manager, Infrastructure Platforms and Technologies, said.

Leading server suppliers

Dell Technologies has lost its server market share in the second quarter of 2019, according to the latest IDC report.

The unit share of Dell Technologies fell to 17.8 percent in Q2 2019 from 19.4 percent in Q2 2018. The revenue share of Dell Technologies dropped to 19 percent in Q2 2019 from 19.3 percent in Q2 2018.

HPE’s server revenue share increased to 18 percent in Q2 2019 from 16.5 percent in Q2 2018 in terms of unit shipment.

The server unit share of HPE increased to 16.3 percent in Q2 2019 from 15.7 percent in Q2 2018.

Server revenue of Dell Technologies declined 13.0 percent. Server revenue of HPE / New H3C Group dropped 3.6 percent.

Inspur increased its revenue by 32.3 percent. Server revenue share of Lenovo was 6.1 percent. IBM’s server revenue share was 5.9 percent. Lenovo’s server revenue declined 21.8 percent. IBM’s server revenue fell 27.4 percent.

Dell Technologies led the server market in terms of unit shipments, accounting for 17.8 percent during the second quarter.