Worldwide Server Shipments Declined 4.2% in Q1 2017


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In the first quarter of 2017, worldwide server revenue declined 4.5% year over year, while shipments fell 4.2% from the first quarter of 2016, according to Gartner, Inc.

"The first quarter of 2017 showed declines on a global level with a slight variation in results by region," said Jeffrey Hewitt, research vice president at Gartner. "Asia/Pacific bucked the trend and posted growth while all other regions fell.

"Although purchases in the hyperscale data center segment have been increasing, the enterprise and SMB segments remain constrained as end users in these segments accommodate their increased application requirements through virtualization and consider cloud alternatives," Mr. Hewitt said.

Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue. The company posted just more than $3 billion in revenue for a total share of 24.1% for the first quarter of 2017. Dell EMC maintained the No. 2 position with 19% market share. Dell EMC was the only vendor in the top five to experience growth in the first quarter of 2017.

In server shipments, Dell EMC secured the No. 1 position in the first quarter of 2017 with 17.9% market share. The company had a slight increase of 0.5% growth over the first quarter of 2016. Despite a decline of 16.7%, HPE secured the second spot with 16.8% of the market. Inspur Electronics experienced the highest growth in shipments with 27.3%.

Additional information is available to subscribers of the Gartner Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, subbrand, CPU type, CPU group, max CPU, platform, price band, operating systems and distribution channels.

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