Story image

Global server market maintains healthy growth in Q4 2018

18 Mar 2019

New data released from Gartner shows the global server market continued its growth through 2018.

Total revenue increased 17.8 percent in the fourth quarter of 2018, while shipments grew 8.5 percent year over year. In all of 2018, worldwide server shipments grew 13.1 percent and server revenue increased 30.1 percent compared with full-year 2017.

“Hyperscale and service providers continued to increase their investments in their data centres (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,” says Gartner senior principal analyst Kiyomi Yamada.

“To exploit data centre 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.”

Yamada says there are a number of factors behind the market’s continued growth.

“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,” says Yamada.

In terms of the vendors based on revenue, Dell EMC completed the year with the largest piece of the pie – 20.2 percent market share – followed by Hewlett Packard Enterprise (HPE) with 17.7 percent. Huawei experienced the strongest growth in the quarter, growing a whopping 45.9 percent.

And it was similar results for server shipments for the quarter, with Dell EMC maintaining its place at the top with a 16.7 percent market share, followed by HPE with 12.2 percent. Both these vendors underwent declines over the quarter, while Inspur Electronics experienced the strongest growth with a 24.6 percent increase in shipments in the fourth quarter of 2018.

Full-year 2018 server market results

In terms of regional results, in 2018, Asia/Pacific and North America posted strong growth in revenue with 38.3 percent and 34 percent, respectively. In terms of shipments, Asia/Pacific grew 17.6 percent and North America grew 15.9 percent year over year.

EMEA grew 3.1 percent in shipments and 20.4 percent in revenue. Latin America grew 20.9 percent in revenue, but declined 4.4 percent in shipments. Japan grew 3.3 percent in revenue, 2.1 percent in shipments.

Huawei FusionServer Pro built for 'intelligent transformation'
The next generation X86 servers draw on an intelligent acceleration engine, an intelligent management ending, and intelligent data center solutions for ‘diverse’ scenarios as transformation shifts from digital to intelligent.
HFW deploys digital edge strategy on Equinix
Equinix announced that global law firm HFW has collaborated with Equinix to build out its digital edge in key markets including Dubai, London, Hong Kong, Melbourne and Paris.
DE-CIX and Datacenter One sign service deal for Germany
Datacenter One’s LEV1 data centre in Leverkusen is the first to be connected to DE-CIX, with further DE-CIX sites to be created in the next few years as part of the agreement.
Teradata expands as-a-service offerings for Advantage platform
Data intelligence company Teradata has announced three new cloud and on-premise solutions that are now integrated into its Teradata Vantage platform.
DigiPlex opens up Nordic data centers to international customers
"The Nordics are Europe's premier market: a firm deploying 100 megawatts over 20 years could save approximately $2 billion by placing their data center in Sweden or Norway versus the U.K."
HPE & Nutanix join forces to deliver hybrid cloud as a service
The two tech giants have partnered to offer a fully integrated solution that capitalises on the hybrid IT market.
Opinion: The growing importance of sustainability in data centres
Aruba's Alessandro Bruschini discusses why to carry on growing, the data centre industry will have to turn to green methods of energy consumption and production.
Equinix releases Azure Stack-as-a-Service in APAC
The hybrid cloud solution offers pre-configured, Microsoft validated systems, pre-installed into Equinix IBX data centres.