According to Gartner, the third quarter of 2016 saw a decline of 5.8 percent year over year in worldwide server revenue and a 2.6 percent decline in market shipments from 2015.
Cisco was only supplier in the top five to increase server revenues within Q3 2016.
HPE, Dell and Lenovo all experienced declines in both server revenue and shipments, whilst Huawei and Inspur Electronics saw growth in its shipments.
Figures show that HPE continued as leader in the worldwide server market, despite a decline of 11.8 percent, collecting a total of 25.5 percent market share.
The company announced very recently that it will be extending its composable infrastructure to cloud and hyper-converged offerings, to include a software update for the HPE Hyper Converged 380 server and a new version of HPE Helion CloudSystem.
Dellmaintained its position in second despite a decline of 7.9 percent and market share of 16.5 percent.
Jeffrey Hewitt, research vice president at Gartner said: “The server market was impacted during the third quarter of 2016 by generally conservative spending plans globally… Server providers will need to reinvigorate and improve their value propositions to help end users justify server hardware replacements and growth, if they hope to drive the market back into positive state.”
IBM fell to fifth position, after experiencing the largest decline of -33 percent in growth from Q315.
Gartner’s findings identified that x86 servers declined 2.3 percent in shipments and 1.6 percent in revenue from the third quarter of 2016.
From the top five vendors, Huawei and Inspur Electronics were the only two found to increase in growth for its server shipments from Q315.
In terms of revenue, all regions except for Japan experienced a decline.
