Global Server Revenue Down 0.8% in Q2 of 2016

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In the second quarter of 2016, worldwide server revenue declined 0.8% year over year, while shipments grew 2%from the second quarter of 2015, according to Gartner, Inc. There was some shuffling among the top vendors in the second quarter, as Dell moved into the top spot in shipments, while Hewlett Packard Enterprise (HPE) remained the worldwide leader in server revenue.

"The second quarter of 2016 produced some continued growth on a global level compared with the first quarter, although there were some varied results regionally," said Jeffrey Hewitt, research vice president at Gartner. "All regions showed a decline in shipments except Asia/Pacific and North America, which posted growth of 5.6% and 3%, respectively. In terms of revenue, all regions except for Asia/Pacific and Eastern Europe exhibited a decline. Asia/Pacific grew by 6.1% and Eastern Europe posted 1% growth. Variations of growth by data center segments and exchange rate issues are the main reasons for these results.

"x86 servers grew 2.1% in shipments and 5.8% in revenue in the second quarter of 2016. Dell garnered 19.3% of the market and moved into the No. 1 position in worldwide server shipments due primarily to growth resulting from programs it has in place in the Asia/Pacific region, most notably in China. However, HPE continued to lead the x86 market in revenue with 26% of the market," said Mr. Hewitt.

Despite a decline of 6.4%, HPE continued to lead in the worldwide server market, based on revenue, with 23.7% market share (see Table 1). Dell grew 9.9% and maintained the second spot in the market with 19.1% market share. IBM secured the third position with 9.1% of the market but experienced the largest decline among the top five vendors.