The worldwide server market revenue saw a considerable decline YOY during 1 2020, reports International Data Corporation.
The latest report from International Data Corporation (IDC) found that the global server
market revenue has declined about 6.0% year over year – to $18.6 billion in the first quarter of 2020. The overall server shipments fell to 0.2% YOY to under 2.6 million units only, in Q1 2020.
Considering the server class, the volume server revenue is down with 2.1% to $15.1 billion, and the midrange server revenue has declined to 23.0%, with under $2.6 billion. The high- end systems found to turn down by 9.1% to only under $1.0 billion.
According to Sebastian Lagana, Research Manager of Infrastructure Platforms and
Technologies at IDC as mentioned in the company blog post – “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 hyper-scale and
cloud provider customer set, and continued strength in the non-x86 server space.”
As per the report, companies with the most revenue in Q1 2020 are –
Dell Technologies: $3,473.7
HPE/New H3C Group: $2,891.3
Inspur/Inspur Power Systems: $1,324.4
Lenovo: $1,043.5
IBM: $884.2
The principal findings from the study are –
1. Based on geography, every region declined cumulatively amid the first quarter.
Japan has outperformed the competitive list, down with 0.5%, followed by Latin
America with -2.3%, China with -2.6%, and Asia/Pacific region (without China and
Japan) at -3.0%.
2. The US is down at 6.1%, and Canada declined to 8.3%. Furthermore, Europe, the
Middle East, and Africa area (EMEA) have declined by double digits, down to 11.8%
(year over year).
3. The revenue generated from x86 servers has decreased to 9.1% in Q1 2020 to $16.8
billion while, the non-x86 servers grew to 38.2% year over year – under $1.8 billion.
As mentioned in the report, “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.”