Global server revenues up 2 percent as demand increases

Server market share growth increased with every manufacturer in the top five.

(Image via CNET)

Worldwide server market revenue increased close to 2 percent year-over-year to $14.5 billion in the fourth quarter.

According to latest IDC figures released Wednesday, the demand for servers has remained strong thanks in part to an ongoing refresh cycle, coupled with a bump in cloud service investments.

The figures show HP retained the top spot with 26.8 percent market share in the fourth-quarter with a modest 1.6 percent year-over-year growth. Dell is in second place trailing behind at 16.7 percent market share. Meanwhile, Lenovo took a massive 748.3 percent year-over-year growth thanks to the divesture of IBM's x86 server business in October.

Breaking down the numbers, worldwide server shipments increased 2.8 percent to 2.5 million shipments on the year-ago quarter, while full year that's a 2.3 percent increase on revenues of $50.9 billion.

Mid-range systems, which shot up by more than one-fifth in the fourth quarter, were helped along thanks to an expansion by enterprise investment in scalable systems for virtualization. But high-end servers took a 17.2 percent hit in the anticipation of a new IBM z Systems upgrade unveiled in January.

"IDC continues to see a server market that is largely about serving the needs of two separate and distinct sets of customer workloads," said IDC's Matt Eastwood in prepared remarks. "Traditional 2nd Platform workloads are driving the need for richly configured integrated systems aimed at driving significant levels of consolidation while also enabling advanced management and automation in the datacenter."

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