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Gartner says server slump is over as global revenues rise in Q3
Gartner Inc. has some encouraging news for all those legacy vendors out there, posting an optimistic report on the state of the global server market.
According to the market watcher, the infamous eleven consecutive quarters of declining sales in the server market are history, with revenues rising by 7.5 percent, and shipments growing by 9.2 percent in the third quarter, compared to one year ago. This comes after Gartner recorded more modest server sales growth in quarter two, establishing a growth trend.
“The third quarter of 2015 produced growth on a global level with mixed results by region,” noted Gartner’s research vice president Jeffrey Hewitt, in a statement. “All regions showed growth in both shipments and vendor revenue, except for Eastern Europe, Japan, and Latin America, which posted revenue declines of 5.8 percent, 11.7 percent, and 24.2 percent, respectively, for the period. Currency exchange rates are one of the main reasons for the disparity in regional server market performance.”
With the under-performing regions being chalked down to currency fluctuations, Gartner paints a relatively healthy picture of the market overall.
It’s an assessment that’s backed up by the fact that all major vendors saw revenues increase in Q3, with the exception of IBM. And in IBM’s, its 42 percent revenue decrease can be put down to the sale of its x86 server business to China’s Lenovo Group Ltd, which saw its revenues jump by a massive 542.2 percent to claim 7.9 percent of the market overall. That increase means Lenovo is now the fourth largest server vendor overall, jumping ahead of Cisco Systems Ltd. Hewlett-Packard Co., which is now Hewlett-Packard Enterprise, saw 9.1 percent revenue growth as it retained first place with a 27.3 percent overall market share.
Gartner noted that the global server market finally rebounded in Q2 2015 after experiencing the agony of ten straight quarters of declining revenues and 11 straight quarters of declining shipments. Overall revenues for the third quarter were slightly down compared to the one before, due to falling server prices.
Photo Credit: Tom Raftery via Compfight cc
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