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June 3, 2016

HPE continues to lead worldwide server market

The company was the only vendor in the top five to show growth in Q1.

By CBR Staff Writer

Hewlett Packard Enterprise (HPE) was the only vendor in the top five to see its server revenue increase in the first quarter of this year, according to Gartner.

Global server revenue declined annually by 2.3% in Q1 to $13bn, but HPE registered an increase of 3.3%, from $3.2bn to $3.3bn.

The revenue growth saw HPE increase its market share from 23.8% to 25.2%.

Even though overall revenue declined, shipment estimates increased by 1.7% compared with Q1 of 2015.

Gartner research vice president Jeffrey Hewitt said: "The drop in revenues in light of shipment increases demonstrates that the servers that shipped during the period had lower average selling prices than those that shipped in the same time frame last year.

"The real driver of global growth continues to be the hyperscale data centre segment. The enterprise and small or midsize business (SMB) segments remain relatively flat as end users in these segments accommodated their increased application requirements through virtualisation and considered cloud alternatives."

Dell maintained the second spot in the market with 17.3% market share despite a revenue decline of 1.4%.

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IBM stood at the third position with 9.7% of the market, but experienced the largest decline among the top five vendors, with revenue dropping 32.7% from $1.9bn to $1.3bn.

Lenovo and Cisco were at fourth and fifth places with market shares of 6.7% and 6.5%, respectively.

Gartner’s data reveals that shipments were down across all geographical regions, apart from Asia Pacific, where revenue increased 9.7% on last year against an 8.4% year-on-year rise in shipments.

Western Europe grew 1.4% in shipments and 1.5% in revenue. North America had a 1% increase in shipments but declined 5.9% year over year in revenue.

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