REDWOOD CITY, Calif. – December 11, 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, server shipment momentum to the Cloud held steady in 3Q17 with shipments growing over 20 percent year-over-year (Y/Y) for the seventh consecutive quarter.
“This momentum to the Cloud is driven by the Intel Purley refresh cycle and the need to invest in the latest machine learning technologies as workloads continue to migrate from the Enterprise to the Cloud,” said Baron Fung, Senior Business Analysis Manager at Dell’Oro Group. “Turning to the Enterprise, we saw Enterprise server revenue grow in the quarter. However, the growth was driven by higher systems prices as memory costs continues to climb. Although it benefitted the market this quarter, we believe memory prices will hurt Enterprise demand in 2018 as end-users pause purchases until memory pricing stabilizes,” continued Fung.
Additional highlights from the 3Q17 Server Quarterly Report:
- Cloud data center spending is projected to be strong for the rest the year and into 2018. Server shipments to the Cloud are primarily from White box vendors, who are seeing their revenue and shipments hit all-time highs.
- Shipments for four of the top five OEM server vendors declined Y/Y. This was due to the continued server migration from the Enterprise to the Cloud and the aforementioned memory pricing. Dell was the only top five OEM server vendor to grow server shipments Y/Y.
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.
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.