Server Market Revenue Grew at a Record 38 Percent, Propelled by the Cloud and Enterprise, According to Dell’Oro Group

The Super 7 Accounted for 36 Percent of Worldwide Server Shipments

REDWOOD CITY, Calif., June 12, 2018 /PRNewswire/ — According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the server market grew at a record 38 percent year-over-year, propelled by the Cloud and Enterprise.

The Super 7 Cloud Service Providers (CSP) accounted for 36 percent of the worldwide server shipments in 1Q18.

“The Server market is benefiting from higher average selling prices due to rising DRAM prices and strong demand from both Cloud and Enterprise,” said Baron Fung, Senior Analyst at Dell’Oro Group.  “Each of the Super 7 CSPs increased investments in servers over the prior year to fill up new data centers.  After eight consecutive quarters of year-over-year decline, Enterprise spending on servers finally increased as companies resumed a refresh to the Intel Xeon Scalable server platform. We believe this was prompted by less future DRAM price inflation,” explained Fung.

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Additional highlights from the 1Q18 Server Quarterly Report:

  • The top four CSPs—Google, Amazon, Microsoft, and Facebook—consumed most of the 920 thousand white box servers shipped in the quarter, and together drove 31 percent of server shipments which was a quarterly all-time high.
  • Although white box servers make up over 50 percent of Cloud shipments, certain OEM vendors such as Dell and Lenovo are capitalizing on the server market’s shift to Cloud and are gaining market share.

 

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