FRAMINGHAM, MA – Vendor revenue in the worldwide server market declined 6% year-over-year to $18.6 billion during the first quarter, according to International Data Corp. Worldwide server shipments were down 0.2% to nearly 2.6 million units.
Volume server revenue was down 2.1% to $15.1 billion, while midrange server revenue declined 23% to under $2.6 billion. High-end systems declined 9.1% to under $1 billion.
"Server market performance was relatively similar to the fourth quarter, albeit a bit more muted, with bright spots including the ODM Direct vendor group realizing solid demand from its core hyperscaler and cloud provider customer set, and continued strength in the non-x86 server space," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "That said, the OEM market faced stiff headwinds due to a combination of slowing enterprise demand for x86 servers and supply-chain constraints, both driven largely by macroeconomic impacts."
Dell Technologies held the number one position in the worldwide server market in the first quarter, with a revenue share of 18.7%. HPE/New H3C Group took the second position at 15.5%, followed by Inspur/Inspur Power Systems at 7.1%. Lenovo and IBM were statistically tied for fourth, with market shares of 5.6% and 4.8%, respectively. The ODM Direct group of vendors accounted for 25.9% of total server revenue and was up 6.1% year-over-year to $4.8 billion. Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 18.4% of all units shipped during the quarter.
On a geographic basis, all regions declined in aggregate during the quarter. Japan outperformed the competitive set, down 0.5%, followed by Latin America (down 2.3%), China (down 2.6%), and Asia/Pacific (excluding Japan and China) (down 3%). The US was down 6.1%, and Canada declined 8.3%. Europe, the Middle East and Africa (EMEA) declined 11.8% year-over-year.
Revenue generated from x86 servers decreased 9.1% in the first quarter to $16.8 billion. Non-x86 servers grew 38.2% year-over-year to under $1.8 billion.