Vendor revenue in the worldwide server market declined 6.7% year over year to $22.0 billion during the third quarter of 2019 (3Q19), according to IDC’s Worldwide Quarterly Server Tracker. Worldwide server shipments declined 3.0% year over year to just under 3.1 million units in 3Q19.
“While the server market did indeed decline last quarter, next-generation workloads and advanced server innovation (e.g., accelerated computing, storage class memory, next-generation I/O, etc.) keep demand for enterprise compute at near historic highs,” said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. “In fact, 3Q19 represented the second-biggest quarter for global server unit shipments in more than 16 years, eclipsed only by 3Q18.”
Some highlights:
- Dell Technologies and the combined HPE/New H3C Group ended 3Q19 in a statistical tie* for the number one position with 17.2% and 16.8% revenue share, respectively.
- Revenues for Dell Technologies declined 10.8% year over year
- Revenues for HPE/New H3C Group was down 3.2% year over year.
- The third-ranking server company during the quarter was Inspur/Inspur Power Systems, which captured 9.0% market share and grew revenues 15.3% year over year.
- Lenovo and Cisco ended the quarter tied* for the fifth position with 5.4% and 4.9% revenue share, respectively.
- Lenovo saw revenue decline by 16.9% year over year and Cisco saw its revenue grow 3.1% year over year.
- The ODM Direct group of vendors accounted for 26.4% of total revenue and declined 7.1% year over year to $5.82 billion.
- Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 16.4% of all units shipped during the quarter.