In the latest IDC (International Data Corporation) Worldwide Quarterly Server Tracker, vendor revenue in the worldwide server market increased 37.7 percent, year over year to $23.4 billion during the third quarter of 2018 (3Q18). Worldwide server shipments increased 18.3 percent year over year to 3.2 million units in 3Q18.
The overall server market continues to experience robust demand with 3Q18 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 40.2 percent to $20 billion, while midrange server revenue grew 39.4 percent to $2 billion. High-end systems grew 6.9 percent to $1.3 billion.
“The worldwide server market once again generated strong revenue and unit shipment growth due to an ongoing enterprise refresh cycle and continued demand from cloud service providers,” said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. “Enterprise infrastructure requirements from resource-intensive next-generation applications support increasingly rich configurations, ensuring average selling prices (ASPs) remain elevated against the year-ago quarter. At the same time, hyperscalers continue to upgrade and expand their datacenter capabilities.”
American company Dell Inc. snagged the top stop in the worldwide server market for the said quarter recording a 17.5-percent revenue share and 33.3-percent growth. The technology company led the worldwide server market in terms of unit shipments, accounting for 17.6 percent of all units shipped during the quarter.
Posting a 16.3 percent share of total revenue, HPE/New H3C Group is in second place recording a 14.8-percent grow. Inspur/Inspur Power Systems took the third position in the market with a share of 7.3 percent while the new joint venture contributed to 156.5-percent growth year over year.
Lenovo, with headquarters in China and the United States, placed fourth with a share of 6.2 percent on 67-percent growth. IBM, Huawei, and Cisco rounded out the Top 5, all statistically tied with vendor revenue shares of 5.1 percent, 4.5 percent, and 4.5 percent, respectively. The ODM Direct group of vendors increased its collective revenue by 51.9 percent year over year to nearly $6.3 billion.
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