FRAMINGHAM, Mass.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/IDCTracker?src=hash” target=”_blank”gt;#IDCTrackerlt;/agt;–According to the International Data Corporation (IDC)
Worldwide
Quarterly Server Tracker, vendor revenue in the worldwide server
market increased 12.6% year over year to $23.6 billion during the fourth
quarter of 2018 (4Q18). Worldwide server shipments increased 5.0% year
over year to just under 3.0 million units in 4Q18.

The overall server market continues to experience robust demand with
4Q18 marking the fifth consecutive quarter of double-digit revenue
growth and its highest total revenue in a single quarter ever. Volume
server revenue increased by 17.8% to $19.0 billion, while midrange
server revenue grew 30.3% to $2.5 billion. High-end systems declined
28.3% to $2.1 billion.

“Reduced demand from hyperscale companies created downward pressure on
worldwide server market growth rates during the quarter,” said Sebastian
Lagana, research manager, Infrastructure Platforms and Technologies
at IDC. “This was offset by increased server sales to enterprise
customers and higher average selling prices (ASPs). Enterprises are
buying richly configured servers to support resource intensive
workloads, resulting in higher ASPs and pushing revenue growth higher
than growth from unit shipments.”

Overall Server Market Standings, by Company

Tied* for the number one position in the worldwide server market during
4Q18 were Dell Inc., at 18.7% revenue share, and HPE/New H3C Group, with
17.8% revenue share, growing 20.4% and 10.5% year to year respectively.
IBM was the third-ranked server supplier during the quarter capturing
8.3% of total server revenues. IBM’s performance during the quarter
excludes sales generated through the company’s recently established
partnership with Inspur Power Systems. Inspur/Inspur Power Systems and
Lenovo tied for fourth with revenue shares of 6.6% and 6.2%
respectively. Inspur/Inspur Power Systems increased its revenue 70.7%
year over year and Lenovo increased its revenue 33.8% year over year.
The ODM Direct group of vendors accounted for 20.1% of total revenue, up
11.6% year over year to $4.7 billion. This was an uncharacteristically
low growth rate for this group of companies. Dell Inc. led the worldwide
server market in terms of unit shipments, accounting for 19.4% of all
units shipped during the quarter.

Notes:

In addition to the table above, a graphic illustrating worldwide revenue
market share for the top 5 server companies over the previous five
quarters is available by viewing this
press release on IDC.com.

Notes:

Top Server Market Findings

On a geographic basis, Asia/Pacific (excluding Japan) was the fastest
growing region in 4Q18 with 25.5% year-over-year revenue growth. Latin
America grew 15.4% during the quarter, while the Europe, the Middle East
and Africa (EMEA) region grew 15.2% on aggregate. Japan grew 5.3% in
4Q18, the United States grew 5.1%, and Canada declined 5.7%. China saw
its 4Q18 vendor revenues grow 30.7% year over year.

Demand for x86 servers increased 18.7% in 4Q18 to $21.1 billion in
revenue. Non-x86 servers contracted 21.6% year over year to $2.5 billion.

IDC’s Server Taxonomy

IDC’s Server Taxonomy maps the eleven price bands within the server
market into three price ranges: volume servers, midrange servers and
high-end servers. The revenue data presented in this release is stated
as vendor revenue for a server system. IDC presents data in vendor
revenue to determine market share position. Vendor revenue represents
those dollars recognized by multi-user system and server vendors for ISS
(initial server shipment) and upgrade units sold through direct and
indirect channels and includes the following embedded server components:
Frame or cabinet and all cables, processors, memory, communications
boards, operating system software, other bundled software and initial
internal and external disk shipments.

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.

For more information about IDC’s Worldwide Quarterly Server Tracker,
please contact Lidice Fernandez at 305-351-3057 or [email protected].

About IDC Trackers

IDC
Tracker products provide accurate and timely market size, vendor
share, and forecasts for hundreds of technology markets from more than
100 countries around the globe. Using proprietary tools and research
processes, IDC’s Trackers are updated on a semiannual, quarterly, and
monthly basis. Tracker results are delivered to clients in user-friendly
excel deliverables and on-line query tools.

About IDC

International Data Corporation (IDC) is the premier global provider of
market intelligence, advisory services, and events for the information
technology, telecommunications, and consumer technology markets. With
more than 1,100 analysts worldwide, IDC offers global, regional, and
local expertise on technology and industry opportunities and trends in
over 110 countries. IDC’s analysis and insight helps IT professionals,
business executives, and the investment community to make fact-based
technology decisions and to achieve their key business objectives.
Founded in 1964, IDC is a wholly-owned subsidiary of International Data
Group (IDG),
the world’s leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
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Contacts

Sebastian Lagana
508-935-4585
[email protected]

Michael
Shirer
508-935-4200
[email protected]