Hardware

Worldwide server market revenue grew 19.8% YoY Q220

According to the International Data Corp. (IDC) Worldwide Quarterly Server Tracker, vendor revenue in the worldwide server market grew 19.8% year over year to $24 billion during the second quarter of 2020 (2Q20). Worldwide server shipments grew 18.4% year over year to nearly 3.2 million units in 2Q20.

In terms of server-class, volume server revenue was up 22.1% to $18.7 billion, while midrange server revenue declined 0.4% to about $3.3 billion and high-end systems grew by 44.1% to $1.9 billion.

“Global demand for enterprise servers was strong during the second quarter of 2020,” said Paul Maguranis, Senior Research Analyst, Infrastructure Platforms and Technologies at IDC. “We certainly see areas of reduced spending, but this was offset by investments made by large cloud builders and enterprises targeting solutions that support shifting infrastructure needs caused by the global pandemic. Investments in Asia/Pacific were also particularly strong, growing 31% year over year.”

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The worldwide server market ended 2Q20 with a statistical tie between Dell Technologies and HPE/New H3C Group for the No. 1 position. HPE/New H3C Group finished the quarter with a market share of 14.9% while Dell Technologies captured a 13.9% share of worldwide revenues. Inspur/Inspur Power Systems took third place with a 10.5% share and an impressive 77% YoY growth.

Lenovo and IBM tied for fourth with 6.1% and 6.0% share, respectively. The ODM Direct group of vendors accounted for 28.8% of total server revenue at $6.9 billion with year-over-year growth of 63.4% and delivered 34.4% of all units shipped during the quarter.