IT Trends

Servers Up in Most Recent Quarter

• By Joshua Bolkan
• 09/14/17

Revenue for server sales increased 2.8 percent year over year in the second quarter of 2017, outstripping shipments, which were up 2.4 percent during the same period, according to a new report from Gartner.

Hewlett Packard Enterprise (HPE) continued to lead the market despite slipping in both revenue and market share. The company held a 23 percent share of the market for the quarter on $3.2 billion in revenue, down from $3.5 billion in sales and a 26.1 percent share during the same period last year.

In shipments, HPE came in second, moving about 483,000 units, down year over year from 529,000, enough to drop from a 19.2 percent market share to 17.1 percent.

Dell EMC remained in second place with positive growth, improving revenue from $2.6 billion and a 19.1 percent share of the market in last year's second quarter to $2.8 billion and 19.9 percent of the market in the most recent quarter.

Dell also saw a drop in the number of sales from last year's second quarter to this year's, falling from 529,000 to 493,000, though the less precipitous decline allowed the company to edge out HPE for market leader with 17.5 percent of the market as measured by number of sales.

IBM, in third place, saw its server revenue fall off from 1.2 billion and a 9.1-percent share to $960 million and a 6.9-percent share. Revenue for the company's server sales, however, was not enough to crack the top five.

Cisco holds the fourth spot and saw its revenue improve from $859 million to $866 million year over year, while its market share declined slightly from 6.3 to 6.2 percent. As with IBM, the company's server revenue for the quarter was not enough to place it in the top five.

Huawei's revenue increased from $536 million and a 4-percent share in last year's second quarter to $846 million and a 6.1 percent in the most recent period. The company also made a showing as the third market leader by shipments, at 176,426, good enough for a 6.2 percent share.

Inspur Electronics held the fourth spot for market share by shipment volumes, moving 158,373 units in this year's second quarter for a 5.6 percent share.

Lenovo follows them in the fifth spot at 145,655 sales and a 5.2-percent share.