Worldwide server revenue grew 5.1% in Q4 of 2019: Gartner

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Published: March 19, 2020 7:09:04 PM

The India server market saw an increase in demand of unit shipments in the fourth quarter of 2019 by 14.7 per cent, but the revenues declined by 13.2 per cent year over year.

"The market returned to growth with a very strong fourth quarter result, largely driven by a return of demand from hyperscalers," said Adrian OConnell, senior research director at Gartner, said in a statement.“The market returned to growth with a very strong fourth quarter result, largely driven by a return of demand from hyperscalers,” said Adrian OConnell, senior research director at Gartner, said in a statement.

The worldwide server market continued to grow in the fourth quarter of 2019 as revenue increased 5.1 per cent and shipments grew 11.7 per cent year over year, according to Gartner, Inc. In all of 2019, worldwide server shipments declined 3. 1 per cent and server revenue declined 2.5 per cent compared with full-year 2018, the research firm said. “The market returned to growth with a very strong fourth quarter result, largely driven by a return of demand from hyperscalers,” said Adrian OConnell, senior research director at Gartner, said in a statement.

“However, the outlook for the worldwide server market in 2020 is subject to great uncertainty. The impact of the coronavirus (COVID-19) outbreak is expected to temper forecast growth. Although demand from the hyperscale segment is expected to continue through the first half of the year, other buying organisations’ reactions will vary,” he said.

The India server market saw an increase in demand of unit shipments in the fourth quarter of 2019 by 14.7 per cent, but the revenues declined by 13.2 per cent year over year. Server shipments in India grew by 4.8 per cent in 2019 while server revenue declined 8.7 per cent. HPE secured the top spot in India server market based on revenue in the fourth quarter of 2019 with 37.4 per cent market share, according to Gartner. Dell EMC secured 26.6 per cent market share, followed by Lenovo with 16.6 per cent of the market.

Cisco experienced the strongest growth in the quarter among the top five vendors, with revenue growing 0.8 per cent. Dell EMC secured the top spot in the worldwide server market based on revenue in the fourth quarter of 2019. Despite a decline of 9.9 per cent year over year, Dell EMC secured 17.3 per cent market share, followed by Hewlett Packard Enterprise (HPE) with 15.4 per cent of the market.

IBM experienced the strongest growth in the quarter, growing 28.6 per cent, the statement said. In server shipments, Dell EMC maintained the number one position in the fourth quarter of 2019 with 14.2 per cent market share. HPE secured the second spot with 10.8 per cent of the market. Both Dell EMC and HPE experienced declines in server shipments, while Lenovo experienced the strongest growth with a 22.4 per cent increase in shipments in the fourth quarter of 2019.

In full year 2019, both worldwide server shipments and revenue declined, with shipments falling 3.1 per cent and revenue down 2.5 per cent. As for vendor performance, Dell EMC took the top spot in both revenue and shipments with 20.5 per cent market share and 16.3 per cent market share, respectively. HPE secured the number two position with market share of 17.3 per cent in revenue and 12.3 per cent in shipments. Inspur Electronics is the only vendor in the top five that grew in both revenue and shipments in 2019, it said.

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