According to the latest Gartner study, global revenues from the server market increased by 17.8% in the fourth quarter of 2018, while shipments (i.e. units) also increased by 8.5% annually.

As for the Emea server market, revenues increased by 12.3%, while shipments increased by 6.6%.

Throughout 2018, server shipments around the world have grown by 13.1%. While revenue from servers increased by 30.1% compared to the previous year, 2017.

According to Kiyomi Yamada, Gartner’s senior principal analyst, hyperscale and service providers have continued to increase their investment in data centers. Although at lower levels than in early 2017. This is to meet the growing demand for services from customers. And to respond to the business acquisition of services from cloud providers.

According to the analyst, product managers of technological solutions of server providers should prepare for a steady increase in server demand throughout 2019. Although growth will be slower than in 2018.

In addition, DRAM prices have started to fall, increasing demand for memory-rich configurations. Configurations needed to support emerging workloads such as artificial intelligence and analytics and which have supported server prices. According to Gartner, product managers should market servers with a higher memory content to benefit from DRAM surpluses.

The main vendors of the server market

Dell Emc has won the first place in the world server market based on revenues in the fourth quarter of 2018. Dell Emc closed the year with a market share of 20.2%, followed by Hewlett Packard Enterprise (Hpe) with 17.7% of the market. Huawei recorded the strongest growth in the quarter, with an increase of 45.9%, a real exploit.

As for server shipments, Dell Emc is also in first position in the fourth quarter of 2018. With a market share of 16.7%. Hpe got second place with 12.2% of the market. Both Dell Emc and Hpe have recorded a decrease in server shipments.

Inspur phenomenon

On the contrary, Inspur Electronics recorded the strongest growth, with an increase of 24.6% of shipments in the fourth quarter of 2018. The Inspur Group is one of the leading Chinese players in the areas of cloud computing and big data. It provides comprehensive solutions to IaaS, PaaS and SaaS, as well as high-end servers, mass storage, cloud operating systems and information security technology.

The x86 server market grew by 27.1% and shipments increased by 8.7% in the fourth quarter of 2018.

As regards regional results, in 2018 Asia/Pacific and North America experienced strong revenue growth. With 38.3% and 34% respectively. In terms of shipments, Asia/Pacific grew by 17.6% and North America grew by 15.9% on an annual basis.

Emea grew by 3.1% in shipments and 20.4% in revenues. Latin America grew 20.9% in revenues, but dropped 4.4% in shipments. Japan grew by 3.3% in revenues and 2.1% in shipments.

The server market in the Emea area

In the fourth quarter of 2018, revenue servers in the Emea area exceeded $4.4 billion. Growth of 12.3% compared to the fourth quarter of 2017. Server shipments totaled 586,000 units, with an annual growth of 6.6%.

Gartner analysts point out that the Emea market closed positively in the fourth quarter and year in general. However, they also point out that much of the revenue increase is due to the higher costs of the components, which led to higher prices than the systems. It is also important to note, according to Gartner, that the total shipments in 2018 were lower than those of 2016.

In terms of revenue, all the top five suppliers, except Ibm, grew in the fourth quarter of 2018. Hpe kept the first position and increased its revenue share. Dell Emc, second ranked, recorded the highest growth compared to the fourth quarter of 2017. Ibm, in third place, has instead recorded a decrease of revenues.

According to Gartner, Emea continues to be a strong region for Hpe. In addition, the acquisition of Emc continues to generate a very good growth of revenues in servers, for Dell Emc. However, the cyclical nature of the high-end server business currently hinders Ibm.

Weak demand in the emea area

As in the rest of 2018, while revenue results are positive, moderate shipments, which continue to be lower than in previous years, indicate a relatively weak underlying demand across the Emea market.

The increase in prices due to the higher component costs will be reduced in 2019, Gartner warns.

The supply levels of key components have already improved considerably and Gartner expects this to be transferred to users in the form of lower server prices during 2019.

Therefore, the forecast for revenues will certainly be weaker than in 2018. Moreover, the relatively low level of demand in the Emea area appears to be set to continue.

More information and full reports are available on the Gartner website, at this link.

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