revenue jumps 12.6 percent on strong enterprise demand for workload infrastructure
Despite the continued adoption of cloud computing and the shift to service-based IT consumption, local on-premises server sales increased 5 percent and revenue jumped 12.6 percent in the fourth quarter of 2018 as enterprises bought
The Lowdown: A combination of high demand for servers by enterprises and higher average sales price resulted in the best revenue quarter ever for server vendors, said IDC in its Worldwide Quarterly Server Tracker. Additionally, the demand for midrange servers offset a decline in high-end units used in
The Details: The double-digit growth in server sales in the past three months of 2018 marks the fifth straight quarter of double-digit server growth. Overall, server revenue collected by vendors climbed 12.6 percent on a unit shipment increase of 5 percent. Midrange servers increased 30.3 percent while high-end systems declined 28.3 percent.
The Impact: Of the top five server vendors, Dell led the market with $4.4 billion in server sales and a commanding market share of 18.7 percent.
Hewlett Packard Enterprise held the second spot, with $4.2 billion in revenue and 17.8 percent market share, and IBM held the third, with revenue of $1.95 billion and market share of 8.3 percent.
Inspur posted sales of $1.55 billion and a 6.2 percent market share, while Lenovo had $1.5 billion in sales with a 6.2 percent market share.
Overall, the server market generated $23.6 billion in sales compared to $20.9 billion in the fourth quarter of 2017.
The Buzz: “Reduced demand from