FRAMINGHAM, MA – Worldwide server shipments declined 9.3% year-over-year to fewer than 2.7 million units during the second quarter, according to IDC. Vendor revenue in the worldwide server market declined 11.6% year-over-year to just over $20 billion.
After a torrid stretch of prolonged market growth that drove the server market to historic heights, the global server market declined for the first time since the fourth quarter of 2016, says IDC. All classes of servers were impacted, with volume server revenue down 11.7% to $16.3 billion, while midrange server revenue declined 4.6% to $2.4 billion, and high-end systems contracted 20.8% to $1.3 billion.
"The second quarter saw the server market's first contraction in nine quarters, albeit against a very difficult compare from one year ago when the server market realized unprecedented growth," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. "Irrespective of the difficult compare, factors impacting the market include a slowdown in purchasing from cloud providers and hyperscale customers, an off-cycle in the cyclical non-x86 market, as well as a slowdown from enterprises due to existing capacity slack and macroeconomic uncertainty."
Dell Technologies and the HPE/New H3C Group shared the number one position in the worldwide server market during the second quarter, with revenue shares of 19% and 18%, respectively. Dell declined 13% year-over-year, while HPE/New H3C Group was down 3.6%. Dell led the worldwide server market in terms of unit shipments, accounting for 17.8% of all units shipped during the quarter.
The third position went to Inspur/Inspur Power Systems, increasing revenue 32.3% year-over-year.
Lenovo and IBM tied for fourth, with revenue shares of 6.1% and 5.9%, respectively. Lenovo saw revenue decline 21.8%, while IBM saw revenue contract 27.4%.
The ODM direct group of vendors accounted for 21.1% of total revenue and declined 22.9% year-over-year to $4.23 billion.