Gartner: Cloud Computing and IoT Drive Server Sales Growth Sharply, Chinese Providers Known Overseas

Jennifer| 2017-12-26 Cloud Computing, News Comments( 0 )

New hardware development from HPE, DELL EMC and Lenovo and the demands for larger capacity both help to increase server sales in the global in the third quarter of 2017.

The cloud trend has swept through the whole industry.

In the Q3 of 2017, the demands for larger capacity and new servers drive the server demand growth, and bring more profits, especially for those assemble computer providers. According to a report from Gartner, there is a year-on-year growth of 16 percent in world’s server revenues in the third quarter of 2017. Meanwhile, there is 5.1 percent of increase in unit shipment.

The big gap between revenues and shipments means there are more higher-end servers being sold, instead of budget hardware. In recent month, HPE, DELL EMC and Lenovo all published new hardware products, which is conducive to drive sales because enterprises also has needs of new hardware. Therefore, in third quarter, the market shows new hardware development and consistent increase of cloud computing technology.

HPE dominates the incoming of global servers, while DELL is leading on shipments. HEP continues to lead global server market with high revenues of $3.1 billion, a 21 percent of market share in the third quarter.

DELL EMC closely follow HPE, obtained $3 billion in revenue, a 20.8 percent of market share.  The shipments between HPE and DEAL EMC are almost the same, but DELL has 17.8 percent of market share and HPE 16.7 percent.

For unit shipment, the third one is Inspur Electronics, with year-on-year growth of 116% that is seldom to see for those western investors. Inspur Electronics has offices in both the U.S. and Japan, but they mainly serve the domestic market sales, and the company now is building important data centers in China.

Amazon recently also opened second web service agency in China, and Google plans to release Hong Kong data center in the next year. It shows that non-brand servers become more and more popular.

The “Other” category increased to $5.2 billion, up 8.1 percent, which is twice of HPE in sales per unit. These non-brand server providers are often some Chinese companies which are well received by those large-scale data centers of Google, Amazon and Facebook. Also, with the continuous growth of the three large data center owners, these non-brand server providers still go ahead of those famous brands.

IoT increases the need for servers.

It is but not only the three above boost the server sales growth. A unit named DRAMeXchange from TrendForce, a market research company, ever said that due to industrial transformation and the increasing popularization of intelligent terminals, the demand for server increases sharply.

In short, IoT devices need larger capacity, especially edge capacity.

According to DRAMeXchange, it will drive significant growth in memory, because cloud cpmputing and virtualization are both completed in memory and the needs for mobile phones and PC do not go down.

It is estimated that the increase rate of DRAM will reach 28.6 percent in 2018.

Nevertheless, because of explosive growth of needs, DRAM becomes short around the world, and manufacturers are striving for increasing productivity. As a result, the price of DRAM increased every month, up 85 percent in 2017. Consumers finally pay the increased costs. 

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