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Global Server Market Rose to $20.7B in 4Q17

Friday Mar 2nd 2018 by Sean Michael Kerner

The server market surged in the last quarter of 2017, according to IDC.

2017 ended on a high note for the worldwide server market, according to IDC's Worldwide Quarterly Server Tracker for the fourth quarter of 2017 (4Q17).

According to IDC's analysis, global server revenues in 4Q17 totaled $20.7 billion, for a 26.4 percent year-over-year gain. The fourth quarter surge was also a gain over the third quarter of 2017, where IDC reported global server revenues of $17.0 billion, for a 19.9 percent year-over-year gain.

Server revenue is now growing faster than shipments, with IDC reporting 4Q17 global server shipments of 2.84 million units, for a 10.8 percent gain year-over-year.

Different areas of the server market are growing at varying rates, with midrange server revenues growing at 48.5 percent to $1.9 billion. Volume server revenues grew by 21.9 percent to $15.8 billion, while the big winner in terms of growth this quarter was high-end systems, which includes mainframes.

IDC reported $2.9 billion in high-end server revenues, for a 41.1 percent year-over-year gain, led by the IBM z14 launch.

"Hyperscalers remained a central driver of volume demand in the fourth quarter with leaders such as Amazon, Facebook, and Google continuing their datacenter expansions and updates," Sanjay Medvitz, senior research analyst, Servers and Storage at IDC, stated.

Vendors

HPE and Dell Inc led the worldwide server market in terms of revenue and market share in 4Q17. IDC reported that HPE had $3.8 billion in revenues, while Dell had $3.6 billion.

IBM held the third spot at $2.7 billion, followed by Lenovo and Cisco, which both reported global 4Q17 server revenues of approximately $1.1 billion.

IDC servesR 4Q17

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

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