In the first quarter of 2017, worldwide server revenue declined 4.5 percent year over year, while shipments fell 4.2 percent from the first quarter of 2016, according to Gartner.
Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue. The company posted over $3 billion in revenue for a total share of 24.1 percent for the first quarter of 2017 . Dell EMC maintained second place with a 19 percent market share, and was the only vendor in the top five to experience growth in the first quarter of 2017.
“The first quarter of 2017 showed declines on a global level with a slight variation in results by region,” said Gartner’s research vice president Jeffrey Hewitt. “Asia/Pacific bucked the trend and posted growth while all other regions fell.
“Although purchases in the hyperscale data centre segment have been increasing, the enterprise and SMB segments remain constrained as end users in these segments accommodate their increased application requirements through virtualisation and consider cloud alternatives,” Hewitt said.
Worldwide: Server Vendor Revenue Estimates, 1Q17 (U.S. Dollars)
| Company | 1Q17
Revenue |
1Q17 Market Share (%) | 1Q16
Revenue |
1Q16 Market Share (%) | 1Q17-1Q6 Growth (%) |
| HPE | 3,009,569,241 | 24.1 | 3,296,591,967 | 25.2 | -8.7 |
| Dell EMC | 2,373,171,860 | 19.0 | 2,265,272,258 | 17.3 | 4.8 |
| IBM | 831,622,879 | 6.6 | 1,270,901,371 | 9.7 | -34.6 |
| Cisco | 825,610,000 | 6.6 | 850,230,000 | 6.5 | -2.9 |
| Lenovo | 731,647,279 | 5.8 | 871,335,542 | 6.7 | -16.0 |
| Others | 4,737,196,847 | 37.9 | 4,537,261,457 | 34.7 | 4.4 |
| Total | 12,508,818,106 | 100.0 | 13,091,592,596 | 100.0 | -4.5 |
Source: Gartner (June 2017)
In server shipment numbers, however, Dell EMC secured top spot in Q1, registering a 17.9 percent market share. The company had a slight increase of 0.5 percent growth over the first quarter of 2016. Despite a decline of 16.7 percent, HPE secured the second spot with 16.8 percent of the market. Inspur Electronics experienced the highest growth in shipments with 27.3 percent.
Worldwide – server vendor shipment estimates, Q1 2017
| Company | 1Q17
Shipments |
1Q17 Market Share (%) | 1Q16
Shipments |
1Q16 Market Share (%) | 1Q17-1Q16 Growth (%) |
| Dell EMC | 466,800 | 17.9 | 464,292 | 17.1 | 0.5 |
| HPE | 438,169 | 16.8 | 526,115 | 19.4 | -16.7 |
| Huawei | 156,559 | 6.0 | 130,755 | 4.8 | 19.7 |
| Lenovo | 145,977 | 5.6 | 199,189 | 7.3 | -26.7 |
| Inspur Electronics | 139,203 | 5.4 | 109,390 | 4.0 | 27.3 |
| Others | 1,254,892 | 48.2 | 1,286,097 | 47.4 | -2.4 |
| Total | 2,601,600 | 100.0 | 2,715, 138 | 100.0 | -4.2 |
