TECH SUPPLIER Sep 2019 - Market Share - Doc # US45548219

Worldwide Server Market Shares, 2Q19: Server Market Growth Tied to Configuration Richness as Shipment Volume Slows

By: Sebastian LaganaResearch Manager, Infrastructure Systems, Platforms and Technologies Group, Paul MaguranisSenior Research Analyst, Infrastructure Systems, Platforms and Technologies, Greg MacateeResearch Analyst, Infrastructure Systems, Platforms and Technologies

Abstract

This IDC study provides a brief overview of the worldwide server market performance during the second quarter of 2019.

Vendor revenue in the worldwide server market declined 11.6% year over year (y/y) to $20.0 billion during the second quarter of 2019 (2Q19). Worldwide server shipments declined 9.3% y/y to just under 2.7 million units in 2Q19. All classes of servers were impacted, with volume server revenue down 11.7% to $16.3 billion while midrange server revenue declined 4.6% to $2.4 billion and high-end systems contracted by 20.8% to $1.3 billion.

"The second quarter saw the server market's first contraction in nine quarters, albeit against a very difficult compare from one year ago when the server market realized unprecedented growth," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "Irrespective of the difficult compare, factors impacting the market include a slowdown in purchasing from cloud providers and hyperscale customers, an off cycle in the cyclical non-x86 market, and a slowdown from enterprises due to existing capacity slack and macroeconomic uncertainty."


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