Significant Growth in Worldwide Server Revenue and Shipments

In BICSI Bytes, Newsby info@bicsi.com.au

According to Gartner, the worldwide server market continued to grow through 2018 as worldwide server revenue increased 17.8% in Q4 2018, while shipments grew 8.5% year-over-year (YoY). In all of 2018, worldwide server shipments grew 13.1% and server revenue increased 30.1% compared with full-year 2017.

“Hyperscale and service providers continued to increase their investments in their datacentres (albeit at lower levels than at the start of 2017) to meet customers’ rising service demand, as well as enterprises’ services purchases from cloud providers,” said Kiyomi Yamada, senior principal analyst at Gartner. “To exploit datacentre infrastructure market disruption, technology product managers for server providers should prepare for continued increases in server demand through 2019, although growth will be a slower pace than in 2018.

“DRAM prices started to come down, increasing demand for memory-rich configurations to support emerging workloads such as artificial intelligence (AI) and analytics kept buoying server prices. Product managers should market higher memory content servers to take advantage of DRAM oversupplies.”

Dell EMC secured the top spot in the worldwide server market based on revenue in Q4 2018, with 20.2% marketshare, followed by Hewlett Packard Enterprise (HPE) with 17.7%. Huawei experienced the strongest growth in Q4, growing 45.9%.

Dell EMC also maintained top spot in server shipments in Q4, with 16.7% marketshare. HPE were second with 12.2%, despite both companies experiencing declines in shipments.