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Server Revenues Grew to $14.7B in 3Q17

By Sean Michael Kerner (Send Email)
Posted December 14, 2017


The third quarter of 2017 was a solid quarter for the global server industry, according to industry analyst reports.

Gartner noted in its 3Q17 server report that global server vendor revenue reached $14.7 billion, for a 16 percent year-over-year gain. In contrast, IDC reported larger numbers with revenue of $17.0 billion, 19.9 percent year-over-year growth for the global server market.

Looking at server shipment volume, Gartner reported 2.8 million servers were shipped in the third quarter, for a 5.1 percent gain over the third quarter of 2016.  IDC reported that 2.7 million servers shipped, an 11.1 percent year-over-year gain.

"The third quarter of 2017 produced continued growth on a global level with varying regional results,"  Jeffrey Hewitt, research vice president at Gartner, said in a statement. "A build-out of infrastructure to support cloud and hybrid-cloud implementations was the main driver for growth in the server market for the period."

IDC similarly is seeing demand for the cloud, driving demand for servers.

"Hyperscalers continued driving volume demand in the third quarter, with Amazon again leading the charge, as Google and Facebook also began ramping up their server deployments again," Kuba Stolarski, research director, Computing Platforms at IDC, stated.

Vendors

HPE is the top server vendor by revenue according to both IDC and Gartner, with $3.1 billion in server revenue for the third quarter. Dell comes in second, followed by IBM, Cisco and then Lenovo.

IDC 3Q17

Sean Michael Kerner is a senior editor at eSecurityPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.

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