Read time: 3 minutes

Q2 slump in global server revenue says Gartner

By , ITWeb
Africa , 14 Sep 2016

Q2 slump in global server revenue says Gartner

A Gartner report indicates worldwide server revenue dropped 0.8% in Q2 of 2016, while shipments increased 2%.

The EMEA region has not fared as well and shipments fell by 2.3% in the same period, from 523,800 in Q2 2015 to 511, 553 in Q2 2016.

There was some shuffling among the top vendors in the second quarter, as Dell moved into the top spot in shipments, while Hewlett Packard Enterprise (HPE) remained the worldwide leader in server revenue, reads a statement from Gartner.

From an EMEA perspective HPE secured top spot in terms of server revenue and shipments, followed by Dell.

Jeffrey Hewitt, research vice president at Gartner said, "The second quarter of 2016 produced some continued growth on a global level compared with the first quarter, although there were some varied results regionally. All regions showed a decline in shipments except Asia/Pacific and North America, which posted growth of 5.6 percent and 3 percent, respectively. In terms of revenue, all regions except for Asia/Pacific and Eastern Europe exhibited a decline. Asia/Pacific grew by 6.1 percent and Eastern Europe posted 1 percent growth.

Hewitt attributed the results mainly to variations of growth by data center segments and exchange rate issues.

"x86 servers grew 2.1 percent in shipments and 5.8 percent in revenue in the second quarter of 2016. Dell garnered 19.3 percent of the market and moved into the No. 1 position in worldwide server shipments due primarily to growth resulting from programs it has in place in the Asia/Pacific region, most notably in China. However, HPE continued to lead the x86 market in revenue with 26 percent of the market," he added.

Despite a decline of 6.4%, HPE continued to lead in the worldwide server market, based on revenue, with 23.7% market share. Dell grew 9.9% and maintained the second spot in the market with 19.1% market share. IBM secured the third position with 9.1% of the market but experienced the largest decline among the top five vendors.

Within EMEA HPE secured 35.3% market share, based on revenue, while Dell grew by 1.3% achieving 18.0% market share.

Daily newsletter