REDWOOD CITY, Calif.— March 14, 2019—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 sustained double-digit, year-over-year, revenue growth in 4Q 2018 for the sixth consecutive quarter. However, growth is forecasted to moderate throughout 2019.

“The server market had a spectacular run over the last six quarters,” said Baron Fung, Director at Dell’Oro Group. “Higher server average selling prices due to richer configurations were enabled by the Xeon Scalable platform, driving revenue growth. In addition, strong unit growth extending across the cloud and enterprise sectors propelled the server market to $76 Billion in 2018, an all-time high. However, momentum appeared to ease in 4Q 2018, as the market approached the tail end of the enterprise server refresh cycle, and as major players in the cloud entered a consumption phase, thereby reducing the need for outsized purchases of IT equipment in 2019,” explained Fung.

Following are additional highlights from the 4Q 2018 Server Quarterly Report:

  • Server market revenue grew 29 percent year-over-year to $76 Billion in 2018.
  • Dell ranked No.1 in vendor revenue share, followed by HPE, Huawei, Inspur, IBM, and Lenovo.
  • Cloud hyperscale data center Capex had strong double-digit growth in 2018, resulting in an all-time high for white box server shipments. Slower growth is projected in 2019.

About the Report

Dell’Oro Group’s Server Quarterly Report provides complete in-depth coverage of the Server market with tables covering manufacturers’ revenue and port shipments for Blade, High-Density, and Stand-Alone servers. The report describes networks, VM density, and white box versus traditional enterprise server shipments. To purchase this report, please contact us at dgsales@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.