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    HP, Dell Lead Growing Worldwide Server Market

    Written by

    Nathan Eddy
    Published May 29, 2015
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      Worldwide server shipments grew 13 percent year over year, while revenue in the first quarter of 2015 increased 17.9 percent from the first quarter of 2014, according to a report from Gartner.

      HP maintained its top ranking in the worldwide server market based on revenue with 23.8 percent market share in the first quarter of 2015. Lenovo experienced the largest increase in the first quarter of 2015 with 658.2 percent growth.

      With the exception of IBM, all of the top five global vendors had revenue increases for the first quarter of 2015.

      The regions with the highest growth rates in unit shipments in the first quarter of 2015 were North America (22.9 percent), the Middle East and Africa (20.8 percent), and Asia/Pacific (13.6 percent).

      HP remained the worldwide leader in server shipments in the first quarter of 2015, but growth was flat, with the company’s worldwide server shipment share at 20 percent–a drop of 2.6 percentage points in share from the same quarter in 2014.

      Gartner reported that all of the top five vendors experienced shipment increases in the first quarter of 2015, with Lenovo producing the largest growth rate of 239.2 percent.

      Factory revenue in the worldwide server market increased 17.2 percent year over year to $12.8 billion in the first quarter of 2015, the fourth consecutive quarter of year-over-year growth, according to a concurrent report released by IDC.

      During the quarter, revenue grew in all form factors, including rack-optimized, blade, density-optimized, and tower. Worldwide server shipments totaled 2.3 million units in the period, an increase of 8.4 percent when compared with the first quarter of 2014.

      According to IDC’s report, HP captured worldwide market share of just under 25 percent, with 10.6 percent year-over-year revenue growth to $3.2 billion.

      The report noted that HP’s revenue growth was driven primarily by strong demand for its rack-optimized servers. The company’s density-optimized business, while small overall, experienced triple-digit growth year over year.

      Dell showed year-over-year growth of 12.6 percent and revenue of $2.3 billion which placed the company in the second spot with 18 percent market share this quarter. IBM retained its number three position following its x86 divestiture, with $1.7 billion in revenue and 13.2 percent market share.

      On a year-over-year basis, volume system revenue increased 13.6 percent and mid-range system demand increased 7.2 percent in the first quarter, to $9.7 billion and $1 billion, respectively.

      The volume segment was aided by a continued expansion of x86-based hyper-scale server infrastructures, while mid-range systems were helped by enterprise investment in scalable systems for virtualization and consolidation, the report noted. Demand for high-end systems experienced a year-over-year revenue increase of 44.7 percent to $2.1 billion.

      Nathan Eddy
      Nathan Eddy
      A graduate of Northwestern University's Medill School of Journalism, Nathan was perviously the editor of gaming industry newsletter FierceGameBiz and has written for various consumer and tech publications including Popular Mechanics, Popular Science, CRN, and The Times of London. Currently based in Berlin, he released his first documentary film, The Absent Column, in 2013.

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