REDWOOD CITY, Calif. – June 12, 2017 – 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, White box server shipments continued to grow at a white hot pace in 1Q17, increasing 41 percent year-over-year. The growth was mainly led by Google and Amazon, with Facebook and Microsoft expected to pick up spending in 2Q17.

“We believe most of the growth in the Server market will come from Cloud deployments,” said Baron Fung, Senior Business Analysis Manager at Dell’Oro Group. “While the upcoming Intel Purley refresh cycle may spur overdue spending in Enterprise, it will be the Cloud providers that will set the market growth pace in 2017. We believe Cloud providers will continue to build-out data centers at a pronounced rate as they invest in the latest server technologies based on the Intel Purley platform and 25 Gbps single-lane SerDes,” continued Fung.

Highlights from the 1Q17 Server Report:

  • Cloud data center spending is projected to be strong for the rest the year, albeit uneven across the major Cloud providers: Google, Microsoft, Amazon, and Facebook.
  • Nearly all of the major U.S.-based branded vendors, led by Hewlett-Packard Enterprise and Dell Technologies, suffered quarter-over-quarter and year-over-year shipment declines for a number of different reasons, including: server migration from the Enterprise/on premise to the Cloud; typical Q1 softness; and a pause in server purchases in anticipation of the Intel Purley server refresh cycle, which is expected in the second half of the year.

About the Report
Dell’Oro Group’s Server Quarterly Report provides complete, in-depth coverage of the market with tables covering manufacturers’ revenue, unit, and port shipments for Blade, High-Density and Stand-Alone servers. Network attach rates, virtualization attach rates and VM density, common equipment overlap between storage, servers and switching, and white box versus traditional enterprise server shipments are included. To purchase this report, contact Matt Dear at +1.650.622.9400 x223 or email Matt@DellOro.com.

About Dell’Oro Group
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.