Worldwide Server Market Revenue Declined 6.7% Year Over Year in the Third Quarter of 2019, According to IDC

FRAMINGHAM, Mass. — (BUSINESS WIRE) — December 5, 2019 — According to the International Data Corporation ( IDC) Worldwide Quarterly Server Tracker, vendor revenue in the worldwide server market declined 6.7% year over year to $22.0 billion during the third quarter of 2019 (3Q19). Worldwide server shipments declined 3.0% year over year to just under 3.1 million units in 3Q19.

In terms of server class, volume server revenue was down 4.0% to $17.9 billion, while midrange server revenue declined 14.3% to $3.0 billion and high-end systems contracted by 23.7% to $1.1 billion.

"While the server market did indeed decline last quarter, next generation workloads and advanced server innovation (e.g., accelerated computing, storage class memory, next generation I/O, etc.) keep demand for enterprise compute at near historic highs," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "In fact, 3Q19 represented the second biggest quarter for global server unit shipments in more than 16 years, eclipsed only by 3Q18."

Overall Server Market Standings, by Company
Dell Technologies and the combined HPE/New H3C Group ended 3Q19 in a statistical tie* for the number one position with 17.2% and 16.8% revenue share, respectively. Revenues for Dell Technologies declined 10.8% year over year while HPE/New H3C Group was down 3.2% year over year. The third ranking server company during the quarter was Inspur/Inspur Power Systems, which captured 9.0% market share and grew revenues 15.3% year over year. Lenovo and Cisco ended the quarter tied* for the fifth position with 5.4% and 4.9% revenue share, respectively. Lenovo saw revenue decline by 16.9% year over year and Cisco saw its revenue grow 3.1% year over year.

The ODM Direct group of vendors accounted for 26.4% of total revenue and declined 7.1% year over year to $5.82 billion. Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 16.4% of all units shipped during the quarter.

 

Top 5 Companies, Worldwide Server Vendor Revenue, Market Share, and Growth, Third Quarter of 2019 (Revenues are in US$ Millions)

Company

3Q19
Revenue

3Q19
Market
Share

3Q18
Revenue

3Q18
Market
Share

3Q19/3Q18
Revenue
Growth

T1. Dell Technologies*

$3,779.3

17.2%

$4,236.0

18.0%

-10.8%

T1. HPE/New H3C Groupa *

$3,690.8

16.8%

$3,811.3

16.2%

-3.2%

3. Inspur/Inspur Power Systemsb

$1,973.3

9.0%

$1,711.8

7.3%

15.3%

T4. Lenovo*

$1,188.3

5.4%

$1,430.1

6.1%

-16.9%

T4. Cisco*

$1,073.2

4.9%

$1,041.0

4.4%

3.1%

ODM Direct

$5,816.0

26.4%

$6,257.2

26.5%

-7.1%

Rest of Market

$4,473.4

20.7%

$5,091.7

21.6%

-12.1%

Total

$21,994.3

100%

$23,579.1

100%

-6.7%

Source: IDC Worldwide Quarterly Server Tracker, December 5, 2019.


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