Server growth remains healthy in Q2, despite fall in midrange systems

Demand for higher-end and low-end servers helped drive growth

Server sales continued to remain steady in the second quarter, in spite of weakening demand for midrange systems, according to research firm IDC.

During the period, vendors collectively saw their server revenue grow by 6.1 per cent year over year to $US13.5 billion. Meanwhile, server shipments increased by 3.2 per cent from a year ago.

Revenue in the market was up on sales of higher-end servers, and lower-end systems used for hyperscale computing. However, demand for midrange systems fell by 5.4 per cent year over year, due to the recent ending of the x86 server refresh cycle, IDC said.

In the second quarter, HP remained the market leader, with a 25.4 per cent share. The company's density-optimized servers were in high demand, with sales of the products jumping by 119 percent from a year ago.

In second place was Dell with a 17.5 per cent share. Its blade and rack servers saw healthy growth.

Third placed IBM was the only vendor among the top five to see its market share and revenue fall during the quarterly period. Last year, the company sold off its x86 server business to Chinese PC maker Lenovo. As a result, its server revenue fell by 32.9 per cent year over year.

In contrast, Lenovo saw its server revenue soar by over 500 per cent, benefiting from the acquisition deal with IBM. The Chinese company is hoping to become a major player in the server space, as it diversifies away from simply selling PCs.

Lenovo reached a statistical tie with Cisco for fourth place in the server market.

Geographically, the U.S. was the fastest-growing market for servers, with 12.6 per cent year over year growth. The Asia Pacific region, excluding Japan, followed the US with 12 per cent growth.

Join the PC World newsletter!

Error: Please check your email address.

Tags serversIDCstorage

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?