How Dell enhanced server market share against HPE in Q3

Server Vendor Revenue Q3 2017Server market revenue increased 19.9 percent to $17 billion in the third quarter of 2017 – fueled by demand from cloud service providers.

Dell has enhanced its server market share to 18.1 percent in Q3 2017 as compared with 15.7 percent in Q3 2016.

HPE lost server market share to 19.5 percent in Q3 2017 from 23.7 percent in Q3 2016.

IBM has increased its server market share to 6.4 percent from 6.1 percent. Cisco lost server share to 5.8 percent from 6.6 percent. Lenovo lost server market share to 5.1 percent from 7 percent.

Analyst firm IDC said server shipments increased 11.1 percent to 2.67 million units.

Volume server revenue increased 19.3 percent to $14.2 billion.

Mid-range server revenue grew 26.9 percent to $1.4 billion.

High-end systems grew 19.4 percent to $1.3 billion.

“Hyperscalers continued driving volume demand in the third quarter, with Amazon again leading the charge, as Google and Facebook also began ramping up their server deployments again,” said Kuba Stolarski, research director, Computing Platforms at IDC.

Dell shines

Dell maintained the second rank in the server market with 18.1 percent share of revenue and 37.9 percent revenue growth to $3.1 billion.

Dell achieved 42.3 percent growth in server revenue in China’s enterprise market to $433 million in Q3 2017.

“Dell grew its server business by 37.9 percent, relying on the strong synergy between its server team and the storage team incorporated from the EMC acquisition,” Kuba Stolarski said.
Server Unit Shipments Q3 2017HPE has been pivoting away from hyperscaler business and focusing on the enterprise, hurting year-over-year comparisons in the short term, but showing strength in the enterprise.

China was one of the growth markets for HPE. HPE has increased its server revenue in China by 49.6 percent to $421 million.

HPE/New H3C Group remained first in the worldwide server market with 19.5 percent market share, though revenue decreased 1.1 percent to $3.3 billion.

HPE’s share and year-over-year growth rate includes revenues from the H3C joint venture in China that began in May of 2016.


IBM had 6.4 percent share of the global server market, with revenue growing 26.5 percent year over year to $1.1 billion.

IBM has demonstrated that the enterprise still has space for non-x86 systems, growing the newly refreshed system z business by 63.8 percent year over year to $673 million.

Cisco Systems had 5.8 percent share, with revenue increasing 6.9 percent to $992 million.

Lenovo was ranked fifth with 5.1 percent share and revenue declining 12.6 percent to $861 million.

The ODM Direct group of vendors grew revenue 45.3 percent to $4.1 billion.

HPE and Dell were in a statistical tie for first place in unit share, each with 18.8 percent.

Baburajan K