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Worldwide server market records ‘very strong’ Q4 results

(Image credit: Shutterstock / tanpanamanoob)

The worldwide server market notched up impressive revenue figures in the fourth quarter of 2019, according to a new report from analyst firm Gartner.

Total revenue grew by 5.1% and shipments by 11.7% over Q4 2018, although the two categories declined by 2.5% and 3.1% respectively across the whole year, compared to the previous.

The server market accounted for upwards of $23 billion in revenue in Q4 2019 and nearly 4 million units were shipped over the same three-month period.

Server market performance

Dell EMC took the top spot in both quarterly revenue (17.3% market share) and shipments (14.2% market share), despite a 9.9% decline in revenue year-on-year. Meanwhile, HPE secured second position by the same metrics with 15.4% and 10.8% market share respectively.

IBM, the third largest player in the server market, increased its earnings by more than a quarter (28.6%), representing the strongest growth performance.

Despite promising Q4 results, Gartner warns the server market is not insulated from uncertainties caused by the spread of the novel coronavirus.

“The market returned to growth with a very strong fourth quarter result, largely driven by a return of demand from hyperscalers,” said Adrian O’Connell, Senior Research Director at Gartner.

“However, the outlook for the worldwide server market in 2020 is subject to great uncertainty. The impact of the coronavirus outbreak is expected to temper forecast growth,” he added.

Irrespective of the coronavirus - now classified a pandemic by the World Health Organisation (WHO) - demand from the hyperscale segment is expected to continue through the first half of 2020.