Michael Dell (CEO - Dell Technologies)
Dell Technologies has extended its server market lead over Hewlett Packard Enterprise (HPE), growing revenue share through the first quarter of 2019.
According to IDC findings, the technology giant posted 20.2 per cent share during the first three months of the year, up from 19.3 per cent during the same period in 2018. In accounting for $3.9 billion in revenue, Dell posted 8.9 per cent growth year-over-year.
Meanwhile, HPE - in addition to new H3C Group - recorded 17.8 per cent revenue, down from 18.5 per cent during 2018, despite a slight increase of revenue at 0.2 per cent to total $3.5 billion.
Tied for third spot is Inspur, Lenovo and Cisco, reporting first quarter market share of 6.2 per cent, 5.7 per cent and 5.3 per cent respectively. Of the chasing pack, Inspur posted 36.4 per cent revenue growth year-over-year, totalling $1.2 billion in the process.
Rounding out the leading vendors, Lenovo posted revenue of $1.1 billion, at a growth rate of 5.7 per cent, in addition to Cisco recording just over $1 billion in sales, at 5.2 per cent growth.
Further down the list, a group of original design manufacturer (ODM) vendors accounted for 23 per cent of total market revenue and declined -1.0 per cent year-over-year to $4.55 billion.
Credit: IDC “Demand from both enterprise buyers and hyper-scale companies purchasing through ODMs was less voracious than in previous quarters; coupled with a difficult compare period from a year ago, this impacted the pace of market growth during the first quarter," said Sebastian Lagana, research manager at IDC.
“This was most evident in declining unit shipments during the quarter, although year-to-year average selling price (ASP) increases supported revenue growth for many vendors.
“As long as demand for richly configured servers supports further ASP growth, the market will offset slight declines in unit volume.”
Credit: IDC More broadly speaking, vendor revenue in the worldwide server market increased 4.4 per cent year-over-year to $19.8 billion during the first quarter, while server shipments declined 5.1 per cent year-over-year to just under 2.6 million units.
According to IDC, the overall server market slowed during the period after experiencing six consecutive quarters of double-digit revenue growth although pockets of robust growth remain.
“Volume server revenue increased by 4.2 per cent to $16.7 billion, while midrange server revenue grew 30.2 per cent to $2.1 billion,” an IDC report stated. “High-end systems contracted steeply for a second consecutive quarter, declining 24.7 per cent year over year to $976 million.”
