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Cloud projects spur server growth

An analysis of the server market in the third quarter from both Gartner and IDC has revealed that cloud projects are driving forward sales

Demand from cloud infrastructure projects by both the large public players and enterprise customers continued to drive growth in the server market.

Gartner numbers for the third quarter showed that worldwide shipments had improved year-on-year by 5.1%. Revenue improved to the tune of 16%.

Both public and private cloud customers were queing up to buy servers to support their projects and the x86 category enjoyed the benefits.

The x86 prodyct segment was up by 5.3% in global shipments and 16.7% in revenue for Q3 but RISC.Itanium Unix servers took a hammering with a 23.5% decline.

The 'other' CPU category, which is primarily mainframes, showed a decline/increase of 54.5%," said Jeffrey Hewitt, research vice president at Gartner.

"A build-out of infrastructure to support cloud and hybrid-cloud implementations was the main driver for growth in the server market for the period,"  he added.

HPE leads the market based on revenue with Dell the closest rival with a gap to IBM in third.

When it comes to shipments Dell is in the lead and HPE comes second. Lenovo, which has been ramping up its channel actions around servers was in fourth position.

The Gartner numbers come on the back of similar findings from IDC, which reported a 19.9% increase in revenue from the server market in Q3.

The analyst house is expecting high-end systems to experience a decline but some major platform refreshes will fuel some ongoing spending.

"Hyperscalers continued driving volume demand in the third quarter, with Amazon again leading the charge, as Google and Facebook also began ramping up their server deployments again," said Kuba Stolarski, research director, Computing Platforms at IDC.

"While ODMs have largely been the beneficiaries of hyperscaler server demand, some OEMs have now begun to experience significant growth related to the enterprise segment," he added.

In its analysis of the two horse race between Dell and HPE the firm noted that both had been actively growing in Q3.

Dell had benefitted from pushing servers along with storage and leaning on the EMC expertise. HPE had started to move away from the large public cloud orders and had been giving more focus to the enterprise.

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