Server market slumps after seven quarters of growth
The worldwide server market saw a year-on-year revenue slump of 3.6 percent in the first quarter to US$12.4 billion, after a winning streak of seven quarters of growth, IDC said Wednesday.
The slowdown in the market, which also witnessed shipments of servers drop by 3 percent year-on-year to 2.2 million units, is largely put down to an end in the enterprise refresh cycle and what is described as a “pause” in investments in hyperscale server deployments.
Those investments are expected to be back in the second half of this year with a pick up in expenditure on servers for existing data centers and the roll out of new ones.
The slowdown in the server market in the first quarter has not affected key players uniformly. Hewlett Packard Enterprise retained its top position, with revenue of $3.3 billion and a 26.7 percent share of market revenue, after a year on-year growth of 3.5 percent. Dell and IBM retained their number two and three spots respectively, but with year-on-year decline in revenue.
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