IDC: Record Server Revenues in Q2 2018

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According to IDC global server revenues are up by 43.7% Y-o-Y in Q2 2018 to reach $22.5 billion, the highest yet. Shipments are also on the up, growing by 20.5% Y-o-Y to 2.9m units. EMEA server revenue growth clocks at 28.9% Y-o-Y.

The analyst says the Q2 2018 is the 4th consecutive quarter of double-digit revenue growth, the result of overall market server demand. Volume server revenues increased by 42.7% Y-o-Y to $18.4bn, while midrange server revenues grew by 63% Y-o-Y to $2.5bn. High-end server systems are worth $1.7bn, a 30.4% Y-o-Y increase.

IDC servers Q2 2018

"The worldwide server market continues to flourish amid a market-wide enterprise refresh cycle and increasing demand from cloud service providers," IDC remarks. "Enterprises continue to invest in new infrastructure to support next-generation applications and achieve cloud-like benefits on premise. Hyperscalers also continue to update and expand their datacenter presence, benefiting ODM Direct suppliers. Server revenue growth has also been driven by increasing ASPs. This is due to richer configurations, DRAM prices, and new processor platforms."

Dell manages to take the top vendor position in server revenues terms for the first time in Q2 2018, with 18.8% revenue share and 52.9% Y-o-Y growth. HPE/New H3C Group comes 2nd, with 16.6% revenue share and 11.7% Y-o-Y growth. 3rd place sees a statistical tie between IBM and Lenovo, with respective shares of 7.3% and 6.9%. Rounding the top 5 is a statistical tie of Inspur, Cisco and Huawei, with respective revenue shares of 4.8%, 4.8% and 4.3%.

The ODM Direct group of vendors increases its collective revenues by 55.9% Y-o-Y to $5.5bn. Dell also leads in shipment terms, accounting for 19.5% of Q2 2018 shipments.

Go IDC Quarterly Server Tracker Q2 2018