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Growth in hyperscale solutions driving global server sales, says Gartner

The growth of server sales should in some ways may be attributable to the growth of PCIe-based storage. No longer are organizations solely dependent on NAS and SAN for their storage needs. The return of direct-attached storage, or in this case – PCIe SSD, potentially decentralizes server-compute requirements particularly for branches and large departments that demand performance and are currently feeling the crunch of latency associated with the network.

 
Gartner Says Worldwide Server Shipments Grew 13 Percent in the First Quarter of 2015, While Revenue Increased 17.9 Percent
 
In the first quarter of 2015, worldwide server shipments grew 13 percent year over year, while revenue increased 17.9 percent from the first quarter of 2014, according to Gartner, Inc. 
 
"The first quarter of 2015 was a particularly strong start to the year, with the strongest shipment growth since the third quarter of 2010, when the market was recovering from the downturn. It was also the second-largest-volume quarter ever," said Adrian O'Connell, research director at Gartner.
 
"The market was driven by particularly strong demand from the hyperscale area, which benefited North America, in particular. This comes at a time when other regions are struggling, due to price pressure driven by the appreciation of the U.S. dollar. The strength in North America was strong enough to offset declines in Latin America and Japan. EMEA was barely positive, with 1 percent volume growth." 
 
"x86 server shipments increased 13.2 percent from the first quarter of 2014, and revenue increased 14.5 percent. RISC/Itanium Unix server shipments declined 2.9 percent, while revenue declined 3.1 percent compared with the same quarter last year. The 'other' CPU category, which is primarily mainframes, showed an increase of 95.1 percent in terms of revenue," said Mr. O'Connell. 
 
HP maintained its No. 1 ranking in the worldwide server market based on revenue with 23.8 percent market share in the first quarter of 2015 (see Table 1). Lenovo experienced the largest increase in the first quarter of 2015 with 658.2 percent growth. All of the top five global vendors had revenue increases for the first quarter of 2015 except IBM. 
 
Table 1
Worldwide: Server Vendor Revenue Estimates, 1Q15 (U.S. Dollars)

Company 1Q15
Revenue
1Q15 Market Share (%) 1Q14
Revenue
1Q14 Market Share (%) 1Q15-1Q14 Growth (%)
HP 3,191,694,948 23.8 2,890,992,229 25.5 10.4
Dell 2,296,473,026 17.1 2,006,639,006 17.7 14.4
IBM 1,887,939,141 14.1 2,244,631,789 19.8 -15.9
Lenovo 970,254,659 7.2 127,973,470 1.1 658.2
Cisco 890,179,930 6.6 616,620,000 5.4 44.4
Others 4,157,871,704 31.0 3,469,383,444 30.6 19.8
Total Market 13,394,413,409 100.0 11,356,239,939 100.0 17.9

Source: Gartner (May 2015) 
 
In server shipments, HP remained the worldwide leader in the first quarter of 2015, but growth was flat (see Table 2). HP's worldwide server shipment share was 20.0 percent, representing a drop of 2.6 percentage points in share from the same quarter in 2014. All of the top five vendors experienced shipment increases in the first quarter of 2015, with Lenovo producing the largest growth rate of 239.2 percent. 
 
Table 2
Worldwide: Server Vendor Shipment Estimates, 1Q15 (Units)

Company 1Q15
Shipments
1Q15 Market Share (%) 1Q14
Shipments
1Q14 Market Share (%) 1Q15-1Q14 Growth (%)
HP 534,559 20.0 534,652 22.6 0.0
Dell 507,433 19.0 464,141 19.7 9.3
Lenovo 220,379 8.3 64,970 2.8 239.2
Huawei 105,803 4.0 85,919 3.6 23.1
Inspur Electronics 91,847 3.4 80,929 3.4 13.5
Others 1,209,319 45.3 1,131,102 47.9 6.9
Total Market 2,669,340 100.0 2,361,712 100.0 13.0

Source: Gartner (May 2015) 
 
In the first quarter of 2015, the regions with the highest growth rates in terms of unit shipments were North America (22.9 percent), the Middle East and Africa (20.8 percent), and Asia/Pacific (13.6 percent). 
 
Additional information is available to subscribers of the Gartner Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, sub brand, CPU type, CPU group, max CPU, platform, price band, operating system and distribution channel.
 

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