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.
The server market continued to decline for the third consecutive quarter. According to IDC’s Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market decreased 3.7 percent year over year to $12.1 billion in Q3.
Server market demand remained soft ahead of a forthcoming refresh cycle, which is expected to emerge in early 2014. After increasing modestly in Q2, server unit shipments were flat year over year in Q3 with 2.3 million units shipped worldwide.
On a year-over-year basis, volume systems experienced 3.5 percent revenue growth. At the same time, demand for midrange and high-end systems experienced year-over-year revenue declines of 17.8 percent and 22.5 percent respectively in Q3. The midrange and high-end segments were impacted by difficult year-over-year compares and continued weakness in Unix demand while volume demand was helped by solid x86 server demand.
The Asia/Pacific posted the strongest growth in server shipment (7.0 percent) and revenue (1.7 percent) year-on-year in Q1.
The US was the only other region to post growth, according to Gartner.
“While these two regions grew in both shipments and revenue, it was not enough to offset the declines of the other geographies – all of which declined in server shipments and revenue for the quarter,” said Jeffrey Hewitt, Research Vice President at Gartner.