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Dell kicks HPE off top spot for server shipments

Dell has finally become a market leader in the server market, shipping more x86 servers than rival HPE

Dell has taken over the top spot from HPE in server shipments, according to Gartner’s latest statistics.

But the analyst noted that although Dell shipped more servers, HPE still led in terms of revenue.

According to Gartner, worldwide server revenue declined by 0.8% in the second quarter of 2016, while shipments increased by 2%.

Despite a decline of 6.4%, HPE remained leader in the worldwide server market, based on revenue, with a market share of 23.7%. Dell grew by 9.9% and maintained second place with a 19.1% share. IBM secured third spot with 9.1% of the market, but saw the largest decline among the top five suppliers, said Gartner.

Jeffrey Hewitt, research vice-president at Gartner, said: “The second quarter produced some continued growth on a global level compared with the first quarter, although there were some varied results regionally.”

All regions showed a decline in shipments except Asia Pacific and North America, which recorded growth of 5.6% and 3%, respectively.

Gartner also reported that all regions apart from Asia Pacific and Eastern Europe saw a decline in revenue. Asia Pacific grew by 6.1% and Eastern Europe by 1%.

Hewitt said variations of growth by datacentre segments and exchange rate issues were the main reasons for these results.

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Gartner attributed Dell’s growth to its success in the x86 market, with the company growing by 8.9% compared with 2015.

“x86 servers grew by 2.1% in shipments and by 5.8% in revenue in the second quarter of 2016,” said Hewitt. “Dell garnered 19.3% of the market and moved into the number one position in worldwide server shipments due primarily to growth resulting from programmes it has in place in the Asia Pacific region, most notably in China.

“However, HPE continued to lead the x86 market in revenue, with 26% of the market.”

Earlier this month, Dell completed its merger with EMC to create Dell Technologies, a business that aims to provide technology to support the internet of things (IoT).

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