Vendor revenue in the worldwide server market declined 6.0% year over year to $18.6 billion during the first quarter of 2020 (1Q20), according to a new report from IDC. Worldwide server shipments declined 0.2% year over year to just under 2.6 million units in 1Q20.
In terms of server class, volume server revenue was down 2.1% to $15.1 billion, while midrange server revenue declined 23.0% to just under $2.6 billion, and high-end systems declined by 9.1% to just under $1.0 billion.
“Server market performance was relatively similar to the fourth quarter, albeit a bit more muted, with bright spots including the ODM Direct vendor group realizing solid demand from its core hyperscaler and cloud provider customer set, and continued strength in the non-x86 server space,” said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. “That said, the OEM market faced stiff headwinds due to a combination of slowing enterprise demand for x86 servers and supply chain constraints, both driven largely by macroeconomic impacts.”
Some highlights:
- The number one position in the worldwide server market in 1Q20 belonged to Dell Technologies with a revenue share of 18.7%.
- HPE/New H3C Group took the second position at 15.5%, followed by Inspur/Inspur Power Systems at 7.1%.
- Lenovo and IBM were tied for the fourth position with market shares of 5.6% and 4.8%, respectively.
- The ODM Direct group of vendors accounted for 25.9% of total server revenue and was up 6.1% year over year to nearly $4.83 billion.
- Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 18.4% of all units shipped during the quarter.