Server market share of HPE and Dell EMC in Q2 2017

HPE and Dell share in server market Q2 2017
IT market research agency IDC said HPE is continuing to lead the server market with 21.3 percent share in Q2 2017 though its revenue fell 8.4 percent to $3.3 billion.

HPE’s share and growth rate includes revenues from the H3C joint venture in China that began in May of 2016.

Dell EMC is the second largest server company with 17.7 percent of vendor revenue – after achieving 7 percent growth to $2.8 billion.

IBM has 6.6 percent server market share, with revenue declining 20.8 percent to $1 billion. Cisco’s server share was 5.6 percent, with revenue increasing 1.7 percent to $875 million.

Lenovo is the fifth largest server company with 5.3 percent share and revenue declining 13.9 percent to $834 million.
Server market revenue Q2 2017 chart by IDCThe ODM Direct group of vendors grew revenue by 48.1 percent to $3.5 billion.

IDC said technology vendor revenue in the server market increased 6.3 percent to $15.7 billion in the second quarter of 2017.

Server market growth rebounded after several slow quarters as the market had been waiting for availability of Intel’s new Skylake processors.

While demand from cloud service providers propped up overall market performance, many other areas of the server market are still stagnant. Worldwide server shipments increased 1.9 percent year over year to 2.45 million units.

Volume server revenue increased 8.3 percent to $12.9 billion, while midrange server revenue grew 19.6 percent to $1.5 billion. Demand for high-end systems experienced revenue decline of 18.9 percent to $1.3 billion.

“Hyperscalers as a group made a large deployment push in the second quarter led by Amazon, which alone accounted for more than 10 percent of server units shipped in the quarter,” said Kuba Stolarski, research director, Computing Platforms at IDC.

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