Press Release

STAMFORD, Conn., September 14, 2016 View All Press Releases

Gartner Says Worldwide Server Revenue Declined 0.8 Percent in the Second Quarter of 2016, While Shipments Increased 2 Percent

Dell Moved Into No. 1 Position in Shipments; HPE Maintained No. 1 Spot in Revenue

In the second quarter of 2016, worldwide server revenue declined 0.8 percent year over year, while shipments grew 2 percent 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 percent and 3 percent, respectively. In terms of revenue, all regions except for Asia/Pacific and Eastern Europe exhibited a decline. Asia/Pacific grew by 6.1 percent and Eastern Europe posted 1 percent growth. Variations of growth by data center segments and exchange rate issues are the main reasons for these results.

"x86 servers grew 2.1 percent in shipments and 5.8 percent in revenue in the second quarter of 2016. Dell garnered 19.3 percent 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 percent of the market," said Mr. Hewitt.

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

Table 1
Worldwide: Server Vendor Revenue Estimates, 2Q16 (U.S. Dollars)

Company

2Q16 Revenue

2Q16 Market Share (%)

2Q15 Revenue

2Q15 Market Share (%)

2Q16-2Q15 Growth (%)

HPE

3,208,997,829

23.7

3,428,089,692

25.1

-6.4

Dell

2,594,180,873

19.1

2,361,553,746

17.3

9.9

IBM

1,226,947,968

9.1

1,869,261,145

13.7

-34.4

Lenovo

968,175,316

7.1

949,775,893

7.0

1.9

Cisco

858,924,000

6.3

866,700,000

6.3

-0.9

Others

4,695,515,875

34.6

4,180,263,723

30.6

12.3

Total

13,552,741,861

100.0

13,655,644,198

100.0

-0.8

Source: Gartner (September 2016)

Due to its success in the x86 market, Dell moved into the No. 1 position in server shipments in the second quarter of 2016, with 8.9 percent growth, garnering 19.2 percent market share (see Table 2). HPE dropped to the second spot with 17.2 percent shipment share, representing an 18.7 percent decline year over year.*

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

Company

2Q16 Shipments

2Q16 Market Share (%)

2Q15 Shipments

2Q15 Market Share (%)

2Q16-2Q15 Growth (%)

Dell

529,135

19.2

485,745

18.0

8.9

HPE

474,803

17.2

583,790

21.6

-18.7

Lenovo

235,267

8.5

222,206

8.2

5.9

Huawei

139,866

5.1

122,565

4.5

14.1

Inspur

120,417

4.4

82,032

3.0

46.8

Others

1,258,045

45.6

1,207,005

44.6

4.2

Total

2,757,532

100.0

2,703,344

100.0

2.0

Source: Gartner (September 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.

* Beginning in the second quarter of 2016, HPE's server sales in China are reflected in H3C; however, Dell is ranked No. 1 in worldwide x86 shipments even if the shipments of HPE and H3C are combined.

Contacts
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 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're trusted as an objective resource and critical partner by 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 www.gartner.com.

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.