Server revenue fell 5.8 percent in the third quarter of 2016, while shipments dipped 2.6 percent, according to Gartner.
Cisco Systems has increased server revenue in the third quarter, while Huawei and Inspur Electronics achieved growth in sever shipments.
HPE, Dell and Lenovo experienced declines in both server revenue and shipments.
Conservative spending plans negatively impacted the global server market during the third quarter of 2016. Ability of end users to leverage additional virtual machines on existing x86 servers without new hardware to meet their server application needs has also affected the server market.
Jeffrey Hewitt, research vice president at Gartner, said: “Server providers will need to reinvigorate and improve their value propositions to help end users justify server hardware replacements and growth, if they hope to drive the market back into a positive state.”
x86 servers declined 2.3 percent in shipments and 1.6 percent in revenue. All vendors in the top five except for Cisco experienced a decline in revenue. In x86 server shipments, only Huawei and Inspur Electronics experienced growth.
Share based on server share
HPE’s server revenue fell 11.8 percent. HPE has 25.5 percent share in the global server market.
Server revenue of Dell declined 7.9 percent, but maintained the second spot in the market with 17.5 percent market share.
Lenovo secured the third spot with 7.8 percent of the market. IBM dropped to the fifth position and experienced the largest decline among the top five vendors.
Share based on server volume
HPE secured the No 1 position in server shipments in the third quarter of 2016, with 18.3 percent of the market. Despite a decline of 9.8 percent, Dell secured the second spot with 16.8 percent market share. Huawei and Inspur were the only vendors in the top five to increase server shipments in the third quarter of 2016, said Gartner.
