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2018 Is a Record Year for the Global Server Market (So Far)

Wednesday Jun 6th 2018 by Sean Michael Kerner

Global server revenue hit $18.8 billion for the first quarter of 2018, according to IDC.

More revenue was generated by server vendors in the first quarter of 2018 than any other quarter in history. IDC reported worldwide first quarter 2018 server revenue was $18.8 billion, for a 38.6 percent year-over-year gain.

Perhaps even more interesting is that revenue growth in the first quarter actually outpaced server shipments. IDC reported that 2.7 million servers were shipped in 1Q18, for a 20.7 percent gain over the first quarter of 2017.

"Hyperscale growth continued to drive server volume demand in the first quarter," Sanjay Medvitz, senior research analyst, Servers and Storage at IDC, wrote in a statement. "While various OEMs are finding success in this space, ODMs remain the primary beneficiary from the quickly growing hyperscale server demand, now accounting for roughly a quarter of overall server market revenue and shipments."

Demand for x86 continues to be the driving force in the sever market again during the first quarter. IDC reported x86 server revenue came in at $17.4 billion, for a 41.0 percent year-over-year gain. Non-x86 server revenue, which includes IBM Power and mainframe system servers, grew by 15.5 percent to $1.4 billion.

In terms of vendors, IDC put Dell and HPE ins a statistical tie for first place. That said, IDC noted Dell was the fastest growing server vendor, increasing its server revenue by 50.6 percent year-over-year.

IDC Servers 1Q18

Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.

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