Vendor revenue in the worldwide server market increased 43.7%, year over year to $22.5 billion during Q2 2018, according to the newly updated International Data Corporation (IDC) Worldwide Quarterly Server Tracker. Worldwide server shipments increased 20.5% year over year to 2.9 million units in 2Q18. Worldwide server shipments increased 20.5% year over year to 2.9 million units in 2Q18.
Q2 Mwas the fourth consecutive quarter of double digit revenue growth and the highest total revenue ever for the server business. Volume server revenue increased by 42.7% to $18.4 billion, while midrange server revenue grew 63.0% to $2.5 billion. High-end systems grew 30.4% to $1.7 billion.
“The worldwide server market continues to flourish amid a market-wide enterprise refresh cycle and increasing demand from cloud service providers,” said Sanjay Medvitz, senior research analyst, Servers and Storage at IDC. “Enterprises continue to invest in new infrastructure to support next-generation applications and achieve cloud-like benefits on premise. Hyperscalers also continue to update and expand their data center presence, benefiting ODM Direct suppliers. Server revenue growth has also been driven by increasing average selling prices (ASPs). This is due to richer configurations, DRAM prices, and new processor platforms.”
Some highlights:
- Dell achieved the number one position in the worldwide server market for the first time in 2Q18 with 18.8% revenue share and 52.9% growth.
- HPE/New H3C Group was the second largest supplier with 16.6% share of total vendor revenue, growing 11.7%. IBM and Lenovo were statistically tied for third position in the market with respective shares of 7.3% and 6.9%.
- Inspur, Cisco, and Huawei rounded out the top five, all statistically tied with 4.8%, 4.8%, and 4.3% respective shares of vendor revenue.
- The ODM Direct group of vendors increased its collective revenue by 55.9% (year over year) to $5.5 billion.
- Dell Inc. led the worldwide server market in terms of unit shipments, accounting for 19.5% of all units shipped during the quarter.
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