Dive Brief:
- Worldwide server revenue fell in the second quarter even as server shipments grew, according to a new report from Gartner.
- Server revenue declined 0.8% year over year to $13.5 billion, while shipments grew 2% to 2.7 million, according to the analyst firm.
- Dell moved into the top spot in shipments, while Hewlett Packard Enterprise (HPE) remained the leader in server revenue.
Dive Insight:
The server market may continue to see big changes as more buyers work to build cloud architectures and want to use low-cost servers rather than premium servers that traditional server brands like HPE make.
"White label vendors" — which often supply data centers that run cloud services — have been challenging the traditional big names in the market. Gartner’s "others" category is now close to half of shipments market share, with 45.6%. That compares to Dell’s 19.2% shipment market share.
For now, Dell and HPE are finding some success in the x86 server market. That market pushed Dell to the number one spot in terms of server shipments in Q2. Dell currently has 19.2% shipment share compared to HP’s 17.2% shipment share. But HP continues to lead the market in revenue with 23.7% of the market.
IBM secured the third position with 9.1% of the market share but experienced the largest decline among the top five vendors. Lenovo and Cisco rounded out the top five.
