Dell overtakes HPE to become # 1 in server shipments

server-revenue-in-q2-2016

server-shipments-in-q2-2016
Dell has overtaken rival HPE to become the number 1 in server shipments in the second quarter of 2016, according to data revealed by IT research agency Gartner.

Server revenue fell 0.8 percent in the second quarter of 2016, while shipments rose 2 percent. Dell has moved into # 1 position in server shipments, while HPE maintained # 1 spot in server revenue, said Gartner.

Server shipments increased 5.6 percent in Asia Pacific – mainly driven by China — and 3 percent in North America.

Gartner said server revenue grew 6.1 percent in Asia Pacific and 1 percent in Eastern Europe in the second quarter of 2016. “Variations of growth by data center segments and exchange rate issues are the main reasons for these results,” said Jeffrey Hewitt, research vice president at Gartner.

The Gartner report on the global server market said x86 servers grew 2.1 percent in shipments and 5.8 percent in revenue in Q2 2016.

Dell has garnered 19.3 percent of the global server market and moved to the No. 1 position in server shipments primarily due to growth resulting from programs it has in place in the Asia Pacific region, most notably in China.

HPE continued to lead the x86 market in revenue with 26 percent of the market.

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. 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.

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.

HPE dropped to the second spot with 17.2 percent shipment share, representing an 18.7 percent decline.

Beginning in the second quarter of 2016, HPE’s server sales in China are reflected in H3C. However, Dell is ranked No. 1 in x86 shipments even if the shipments of HPE and H3C are combined, according to Gartner.

Baburajan K
editor@telecomlead.com

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