In addition to the table above, an interactive graphic showing worldwide market share (based on revenue) for the top 5 server vendors over the previous five quarters is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.
"Other than Cisco, all major USA-based vendors experienced significant global revenue declines year over year, while many international and smaller suppliers were able to find areas of growth," said Lloyd Cohen, research director, Computing Platforms at IDC. "As large enterprise accounts slowed their demand for servers, small businesses and start-ups continued to grow their IT portfolios via non-traditional channels with innovative supply chain strategies. It will be interesting to see how this segment develops over time."
Top Server Market Findings
Regionally, Japan and
Asia/Pacific (excluding Japan)(APeJ) experienced the only positive
revenue growth with 3Q16 year-over-year increases of 1.0% and 0.3%,
respectively. Within APeJ, China led the subdued market in growth with
year-over-year revenue up 4.1% to $2.3 billion. All other regions
declined. Latin America and the United States (USA) experienced
relatively small declines at 6.1% and 7.9%, respectively. Of all
regions, USA remains the largest regional market with 39.9% of server
vendor revenue. EMEA declined 14.5%, with all sub-regions in decline
(Central and Eastern Europe (CEE) declined 21.5%, Western Europe
declined 13.7%, and Middle East and Africa (MEA) declined 13.5%). Canada
declined by 24.5% year over year.
Demand for x86 servers weakened in 3Q16 with revenues decreasing 3.1% year over year in the quarter to $11.2 billion worldwide, while unit shipments decreased 4.3% to 2.36 million servers. x86 average selling prices (ASPs) increased by 1.3% year over year. HPE led the x86 server market with 27.2% revenue share based on a year-over-year decline of 12.9% in x86 revenue. Dell Technologies retained second place, securing 20.0% revenue share following an 8.7% year-over-year revenue decline.
Non-x86 servers experienced a revenue decline of 30.1% year over year to $1.3 billion, representing 10.8% of quarterly server revenue. IBM leads the segment with 64.3% revenue share despite a 32.9% year-over-year revenue decline. IDC also continued to track minimal revenue from ARM-based server sales in 3Q16; ARM sales have yet to make an impact on the server market.
IDC's Server Taxonomy
IDC's Server Taxonomy maps the
eleven price bands within the server market into three price ranges:
volume servers, midrange servers and high-end servers. The revenue data
presented in this release is stated as vendor revenue for a server
system. IDC presents data in vendor revenue to determine market share
position. Vendor revenue represents those dollars recognized by
multi-user system and server vendors for ISS (initial server shipment)
and upgrade units sold through direct and indirect channels and includes
the following embedded server components: Frame or cabinet and all
cables, processors, memory, communications boards, operating system
software, other bundled software and initial internal and external disk
shipments.
IDC's Worldwide Quarterly Server Tracker is a quantitative tool for analyzing the global server market on a quarterly basis. The Tracker includes quarterly unit shipments and revenues (both vendor revenue and value of shipments), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture. For more information, please contact Lidice Fernandez at 305-351-3051 or lfernandez@idc.com.
About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of
IDG,
the world's leading technology media, data, and marketing services
company. To learn more about IDC, please visit
www.idc.com.
Follow IDC on Twitter at
@IDC.
All product and company names may be trademarks or registered trademarks of their respective holders.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161130006375/en/
Contact:
IDC
Kuba Stolarski, 508-935-4172
Email Contact
or
Lloyd
Cohen, 508-935-4333
Email Contact
or
Jorge
Vela, 508-935-4313
Email Contact
or
Michael
Shirer, 508-935-4200
Email Contact
