Inspur explains how it achieved third rank in server market

Inspur server marketInspur Electronic Information Industry has revealed how it achieved the third position in the global server market in the first quarter of 2018.

Dell, HPE and Inspur are the three leading server manufacturers in terms of shipment in Q1 2018. Server shipments rose 20.7 percent to 2.7 million units, while sales grew 38.6 percent to $18.8 billion, according to research firm IDC.

The IDC report said Inspur shipped 175,000 servers, registering 77.5 percent growth, ranked once again as the fastest growing company.

The IDC report said enterprise infrastructure update cycle, procurement requirements of CSPs, and software-defined features, demand for new computing platforms like the Intel Xeon Scalable Processor and deployment of new business systems such as AI are driving server demand.

“Users of hyper-scale data centers in the Internet industry have boosted demand for massive volumes of servers. Tier 1 and Tier 3 CSP companies have seen significant growth in purchases during this quarter,” Sanjay Medvitz, senior analyst for server and storage at IDC, said.
Server share based on shipment Q1 2018
Inspur growth strategy

Inspur relies on the JDM (joint design manufacturing) model to establish cooperation with Tier1 CSPs like Baidu, Alibaba and Tencent.

Inspur is the top server company in the Internet industry in China. Inspur has 57 percent share in the AI server market.

“Inspur M5 servers designed for big data, AI and other smart computing applications are used by a wide range of industries. A series of cloud infrastructure solutions based on the Intel Xeon Scalable Processer Family platform such as SR, InCloudRack and i48 are also applied in telecommunication, government, education, and other sectors,” Peter Peng, vice president of Inspur Group, said.

The growth of sever sales in China was 67.4 percent, making it the main driving force for growth in the overall global market. Peter Peng Inspur has also benefitted from the growth in China.

Inspur has 8 global R&D centers, 6 global production centers, and 2 global service centers. Inspur’s business has grown rapidly in the United States, Europe, Korea, and Japan. The server manufacturing company does not disclose revenue in these networking markets.

IDC said the Asia Pacific region excluding Japan is the fastest growing regional market with 51.7 percent sales growth. Server market in Latin America and the United States grew 41.1 percent and 40.6 percent respectively. EMEA’s server sales rose 35 percent. 28.3 percent was the server growth in Canada. Server sale in Japan increased 2.9 percent.