Vendor revenue in the worldwide server market during the second quarter of 2018 has increased 43.7% year over year to $22.5 billion, according to IDC’s Worldwide Quarterly Server Tracker. Worldwide server shipments increased 20.5% year over year to 2.9 million units in 2Q18. Asia/Pacific (excluding Japan) was the fastest growing region, while Dell achieved the number one position in the worldwide server market for the first time.
The overall server market continues to experience historic demand with 2Q18 marking the fourth consecutive quarter of double-digit revenue growth and its highest total revenue ever, stated IDC. 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 datacenter 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.”
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, according to IDC’s report. Dell also led the worldwide server market in terms of unit shipments, accounting for 19.5% of all units shipped during the quarter. 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.
China: Up 69.7%
On a geographic basis, Asia/Pacific (excluding Japan) was the fastest growing region in 2Q18 with 55.0% year-over-year revenue growth. The United States grew 48.1%, Latin America grew 47.4%, Europe, the Middle East and Africa (EMEA) grew 28.9%, Canada grew 19.9%, and Japan grew 16.5%. China grew 69.7% (!).
Demand for x86 servers increased 44.1% in 2Q18 with $20.5 billion in revenues. Non-x86 servers grew 39.8% year over year to $2.1 billion.
IDC’s Quarterly Server Tracker is a quantitative tool for analyzing the global server market on a quarterly basis. The Tracker includes quarterly unit shipments and revenues (both vendor revenue and value of shipments), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture.