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STAMFORD, Conn., June 2, 2016

Gartner Says Worldwide Server Revenue Declined 2.3 Percent in the First Quarter of 2016, While Shipments Increased 1.7 Percent

In the first quarter of 2016, worldwide server revenue declined 2.3 percent year over year, while shipments grew 1.7 percent from the first quarter of 2015, according to Gartner, Inc.

"Although revenue declined, the first quarter of 2016 continued with a trend of low-level shipments growth on a global level with a variation in results by region," said Jeffrey Hewitt, research vice president at Gartner. "The drop in revenues in light of shipment increases demonstrates that the servers that shipped during the period had lower average selling prices than those that shipped in the same time frame last year."

All regions showed a decline in either shipments and/or vendor revenue except for Asia/Pacific, which posted 9.7 percent growth in revenue and 8.4 percent growth in shipments for the period. Western Europe grew 1.4 percent in shipments and 1.5 percent in revenue. North America posted a 1 percent increase in shipments but declined 5.9 percent year over year in revenue.

"The real driver of global growth continues to be the hyperscale data center segment. The enterprise and small or midsize business (SMB) segments remain relatively flat as end users in these segments accommodated their increased application requirements through virtualization and considered cloud alternatives," Mr. Hewitt said.

Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market, based on revenue, with a 25.2 percent market share (see Table 1). HPE was the only vendor in the top five to experience growth in the first quarter of 2016. Despite a decline of 1.4 percent, Dell maintained the second spot in the market with 17.3 percent market share. IBM secured the third position with 9.7 percent of the market, but experienced the largest decline among the top five vendors.

Table 1
Worldwide: Server Vendor Revenue Estimates, 1Q16 (U.S. Dolla
rs)

Company

1Q16 Revenue

1Q16 Market Share (%)

1Q15 Revenue

1Q15 Market Share (%)

1Q16-1Q15 Growth (%)

HPE

3,296,591,967

25.2

3,191,694,948

23.8

3.3

Dell

2,265,272,258

17.3

2,296,473,026

17.1

-1.4

IBM

1,270,901,371

9.7

1,887,939,141

14.1

-32.7

Lenovo

871,335,542

6.7

970,254,659

7.2

-10.2

Cisco

850,230,000

6.5

890,179,930

6.6

-4.5

Others

4,537,261,457

34.7

4,157,871,705

31.0

9.1

Total

13,091,592,596

100.0

13,394,413,410

100.0

-2.3

Source: Gartner (June 2016)

In server shipments, HPE remained the worldwide leader in the first quarter of 2016, even with a year-over-year shipment decline of 1.6 percent (see Table 2). HPE's worldwide server shipment share was 19.4 percent, representing a 0.6 percent drop in share from the first quarter of 2015.

Of the top five vendors in server shipments worldwide, only Huawei and Inspur produced shipment increases.

Table 2
Worldwide: Server Vendor Shipments Estimates, 1Q16 (Units)

Company

1Q16 Shipments

1Q16 Market Share (%)

1Q15 Shipments

1Q15 Market Share (%)

1Q16-1Q15 Growth (%)

HPE

526,115

19.4

534,559

20.0

-1.6

Dell

464,292

17.1

507,433

19.0

-8.5

Lenovo

199,189

7.3

220,379

8.3

-9.6

Huawei

130,755

4.8

105,803

4.0

23.6

Inspur

109,390

4.0

91,847

3.4

19.1

Others

1,286,097

47.4

1,209,319

45.3

6.3

Total

2,715,838

100.0

2,669,340

100.0

1.7

Source: Gartner (June 2016)

Additional information is available to clients who have access to Gartner's Servers Quarterly Statistics. This database provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, subbrand, CPU type, CPU group, max CPU, platform, price band, operating system and distribution channel.

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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