Monday, August 31, 2015

Q2 Sees Server Growth Despite Midrange Decline

Taking a look at server sales in the second quarter showed that things have stayed pretty steady. This is extra good news considering there was a decreasing demand for midrange systems, according to research firm IDC. During this time, vendors as a whole saw their server revenue increase by 6.1% year over year to $13.5 billion. In addition to that, server shipments also increased by 3.2% from one year ago.

Moreover, revenue in the market also saw an increase on sales of higher-end servers and lower-end servers  used for hyperscale computing. However, the demand for midrange servers decreased by 5.4% year over year. This could be attributed to the recent ending of the x86 server refresh cycle, according to IDC.

In the second quarter, HP contained its top spot as the market leader with a share of 25.4%. The company's density-optimized servers were also in high demand as sales of the products saw a major increase of 119% year over year. Dell came in second place with a 17.5% share as its blade servers and rack servers experienced healthy growth.

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Coming in third place was IBM and the company was also the only vendor in the top five to see its market share and revenue fall during the quarterly period. IBM sold off its x86 server business to Chinese PC developer Lenovo last year and, as a result, its server revenue saw a hefty decrease of 32.9% year over year.

On the other hand, Lenovo saw its server revenue completely skyrocket by over 500%, which was a definite benefit from the acquisition deal with IBM. The China-based company is also hoping to become a major player in the server industry as it has begun diversifying away from its traditional market of PC sales. In addition to that, Lenovo also reached a statistical tie with Cisco for fourth place in the server market.

In terms of geography, the United States was the fastest-growing market for servers, with 12.6% year over year growth. The Asia Pacific region, which excludes Japan, came in second to the United States with 12% growth.

With the x86 server refresh cycle over we can probably assume that midrange servers will continue to see a decline. However, with the numbers of growth posted by both the high-end and low-end markets, we can also assume that the server market is going to steadily increase.

Content originally published here
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