NEWS
NEWS
NEWS
Servers are selling like hot cakes again
Servers sold like hot cakes in the last year, with vendors shifting a record 9.7 million units in 2015, raking in revenues of $55.1 billion for their efforts.
International Data Corp. (IDC) said in its Worldwide Quarterly Server Tracker that this amounted to an eight percent increase in revenues and 4.9 percent more shipments than the year before.
Responsibility for this surge in server sales can be put down to the cloud, with cloud vendors scrambling to build out their data centers by adding servers in massive volumes. IDC said that “enterprise investment in scalable systems for virtualization and consolidation” was the main driver of server sales last year, and said the trend is likely to continue through this one as well.
As for the individual vendors, Hewlett-Packard Enterprise (HPE) led the field with $14.1 billion in revenues and a 25.6 percent share of the market, followed by Dell Inc. in second place with $9.6 billion in revenues and 17.5 percent of the market.
More interesting though is IBM’s third place in the table, despite having sold its x86 server business to China’s Lenovo Group Ltd. last year. The reason Big Blue did so well is because it “experienced strong growth for POWER Systems and double-digit growth for its z System mainframes in the quarter,” IDC said. However, it notes that “Non-x86 servers experienced a revenue decline of -5.4 per cent year over year to $2.9 billion, representing 18.6 year of quarterly server revenue.”
IBM holds sway in the non-x86 server department with 75.8 percent of the revenue share, and also saw “year-over-year revenue increase of 8.9% when compared with the fourth quarter of 2014.”
However, things are looking less rosy for the ARM server niche, which saw sales fall in the last year compared to one year ago. HPE’s Moonshot dominates ARM servers, so that’s bad news for them.
IDC added that growth in Asia saw China’s top four server-makers – Inspur Technologies Co., Ltd., Huawei Technologies Co. Ltd., Lenovo, and Sugon Information Industry Co., Ltd. – grow their combined revenues by 19.5 percent compared to one year ago, mainly due to strong domestic demand.
Photo Credit: Tom Raftery via Compfight cc
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