HPE struggles as server market grows

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The fourth quarter of 2015 saw an increase in servers shipped worldwide, compared to a year before, with revenue also rising. Those are the results seen in Gartner’s latest report on worldwide shipments of servers.

According to Gartner, Q4 2015 saw a jump in shipments of 8.2 percent year-on-year, with revenue up 9.2 percent. Looking at the year as a whole, shipments are up 9.9 percent, and revenue is up 10.1 percent.

The Asia-Pacific region has shown biggest growth in terms of units shipped, 20.1 percent, followed by North America with 8.5 percent and Western Europe, 4.3 percent. All other regions have recorded a decline in vendor revenue. Asia-Pacific grew 19.7 percent, North America 9.7 percent and Western Europe eight percent.

The most interesting data is related to the newly-formed Hewlett Packard Enterprise. Its revenue declined 2.2 percent in Q4, but it is still leading the market with a 25.2 percent share. HPE was the only vendor, out of the top five, that didn’t grow in the quarter. Gartner says this can be attributed to a global weakness in the Windows-based x86 servers.

"The real growth driver for the quarter in terms of absolute value was the other vendors category", said Jeffrey Hewitt, research vice president at Gartner. "This collection of unspecified vendors that includes original design manufacturers (ODMs), like Quanta and Wistron, contributed over $750 million in revenue and over 170,000 server unit shipments for the period. This demonstrates that the growth of hyperscale data centres, like those of Facebook, Google and Microsoft, continues to be the leading contributor to physical server increases globally".

Gartner’s full report on the state of server revenue can be found on this link.

Published under license from ITProPortal.com, a Net Communities Ltd Publication. All rights reserved.

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