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Dell EMC grows as HPE loses ground to white box server providers

The latest Gartner server market share figures show that Dell has gained ground following the acquisition of EMC

Shipments of new servers fell more than 4% in the first quarter of 2017, driven by enterprises buying cloud services and service providers using non-traditional server providers, Gartner’s latest market share report has revealed.

In the European, Middle East and Africa (Emea) market, all of the top five suppliers except Dell EMC saw declines in the first quarter of 2017, according to Gartner.

Server revenue in Emea totaled $2.8bn in the first quarter of 2017, a decline of 12.2% from the first quarter of 2016. Server shipments totaled 503 thousand units, a decline of 8% year-over-year.

HPE maintained the top position but suffered a sharp revenue decrease of 18.2%, while Dell grew 5.3%.

“The first quarter of the year tends to be relatively strong for Dell, but the acquisition of EMC is proving positive for the server business at the moment,” said Gartner research director, Adrian O’Connell.

“HPE’s size means it is subject to the moves of the wider market more than some other suppliers. Weakness in the business segment and sourcing changes in the service provider space have reduced its revenue significantly,” said O’Connell.

According to Gartner, the shift toward hyperscale architectures means service providers are increasingly buying lower cost white box servers from original design manufacturers (ODMs).

“Leading server suppliers will be doing all they can to ensure that service providers don’t continue to shift their server purchases toward ODM suppliers,” said O’Connell.

Read more about original design manufacturers

“Combined with the significant inroads made by China-based suppliers, we expect to see continuing challenges and downward price pressure across the Emea server market for some time to come.”

From a worldwide perspective, Gartner reported that Dell EMC had secured the top position in the first quarter of 2017 with 17.9% market share. HPE declined 16.7% in terms of server shipments. The Chinese server manufacturer Inspur Electronics experienced the highest growth in shipments with 27.3%.

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