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Datacentre, cloud investment driving up server demand

Datacentre, cloud investment driving up server demand

In the fourth quarter of 2018, server revenue in EMEA totalled more than US$4.4-billion, growing 12.3% from the fourth quarter of 2017, according to Gartner. The research and market analysis firm added that server shipments totalled 586,000 units, a growth of 6.6% year-over-year.

"The EMEA market ended the fourth quarter, and the overall year, positively with both good shipment and good revenue growth," said Adrian O'Connell, senior research director at Gartner. "Although these levels of growth were positive, a large part of the revenue increase was due to higher component costs - which lead to higher system prices. It's also important to recognise that total shipments were lower in 2018 than they had been in 2016."

Gartner added that the worldwide server market continued to grow through 2018 as global server revenue increased 17.8% in Q4 2018, while shipments grew 8.5% year-over-year.

In all of 2018, worldwide server shipments grew 13.1% and server revenue increased 30.1% compared with full-year 2017.

"Hyperscale and service providers continued to increase their investments in their datacentres (albeit at lower levels than at the start of 2017) to meet customers' rising service demand, as well as enterprises' services purchases from cloud providers," said Kiyomi Yamada, senior principal analyst at Gartner. "To exploit datacentre infrastructure market disruption, technology product managers for server providers should prepare for continued increases in server demand through 2019, although growth will be a slower pace than in 2018."

"DRAM prices started to come down, increasing demand for memory-rich configurations to support emerging workloads such as artificial intelligence (AI) and analytics kept buoying server prices. Product managers should market higher memory content servers to take advantage of DRAM oversupplies."

The company added that Dell EMC secured the top spot in the worldwide server market based on revenue in Q4 2018. Dell EMC ended the year with 20.2% percent market share, followed by Hewlett Packard Enterprise (HPE) with 17.7% of the market. Huawei experienced the strongest growth in the quarter, growing 45.9%.

Table 4

EMEA: Server Vendor Shipment Estimates, 4Q18 (Units)

Company

4Q18

Shipments

4Q18 Market Share (%)

4Q17

Shipments

4Q17 Market Share (%)

4Q18-4Q17 Growth (%)

HPE

162,375

27.7

159,111

29.0

2.1

Dell EMC

145,900

24.9

140,552

25.6

3.8

Lenovo

37,974

6.5

33,079

6.0

14.8

Cisco

23,603

4.0

20,803

3.8

13.5

Fujitsu

22,948

3.9

21,829

4.0

5.1

Others

192,899

32.9

174,216

31.7

10.7

Total

585,698

100.0

549,591

100.0

6.6

Source: Gartner (March 2019) 

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