Dell EMC widens lead on HPE as worldwide server revenue grew 33.4% in Q1

Dell EMC PowerEdge rack servers are designed for the date centre.
Dell EMC PowerEdge rack servers are designed for the date centre.

Dell EMC turned in a stellar performance in Q1 by growing 51.4 percent in server revenue, enabling it to widen the gap with second-place Hewlett Packard Enterprise (HPE) which nevertheless grew an impressive 21.5 percent.

This meant that Dell EMC snagged a 21.5 percent market share while HPE is a close second with 19.9 percent, according to Gartner.

However, in terms of revenue growth, even Dell EMC was dwarfed by Inspur Electronics which posted a 120.4 percent increase.

Overall, worldwide server revenue rose 33.4 percent in Q1 with shipment up by 17.3 percent year over year.

“The server market was driven by increases in spending by hyperscale as well as enterprise and midsize data centres. Enterprises and mid-size businesses are in the process of investing in their on-premises and co-location infrastructure to support server replacements and growth requirements even as they continue to invest in public cloud solutions,” said Jeffrey Hewitt, Research Vice President of Gartner.

“Additionally, when it came to server average selling prices (ASP) increases for the quarter, one driver was the fact that DRAM prices increased due to constrained supplies,” he added.

The Asia-Pacific region experienced 47.8 percent revenue growth and 21.9 percent shipment growth. Japan experienced a decline in both shipment and revenue (-5.0 percent and -7.3 percent, respectively).

Dell EMC kept its top spot with 18.2 percent market share in terms of shipment despite experiencing a 8.5 percent decline, HPE was next with 13.1 percent of the market.

The x86 server market increased in revenue by 35.7 percent, and shipment was up 17.5 percent in Q1. The RISC/Itanium UNIX market continued to struggle with shipments down 52.8 percent, while revenue declined 46.7 percent.

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