Worldwide Server Market Revenue Declines 4.6% in the First Quarter as the Market Prepares for a Major Refresh, According to IDC

"Results for the quarter were right in line with what IDC had forecast in the fourth quarter of 2016. Demand for two-socket form factors continues to control a majority of unit shipments now and going forward as they are the sweet spot for density-optimized servers," said Lloyd Cohen, director of Worldwide Market Analysis, Computing Platforms at IDC. "Two-socket machines are attractive for datacenter deployment in terms of both power usage and cost per server. Their growth rate may slow down over the short term and, because they control a significant portion of the overall server market, the overall server market growth rate will be dampened worldwide."

Top Server Market Findings

On a geographic basis, Central and Eastern Europe (CEE) was the fastest growing region with 7.2% year-over-year growth, followed by Canada with 2.8%, and Asia/Pacific (excluding Japan) with 0.9%. Within Asia/Pacific, China grew a modest 1.7%. the United States declined 2.3%, Japan declined 4.3%, Western Europe declined 14.3%, Latin America declined 14.6%, and Middle East and Africa declined 14.8%.

Demand for x86 servers was flat (0.0%) in 1Q17 with $10.6 billion in revenues. Non-x86 servers declined 30.9% year over year to $1.3 billion.

IDC's Server Taxonomy

IDC's Server Taxonomy maps the eleven price bands within the server market into three price ranges: volume servers, midrange servers and high-end servers. The revenue data presented in this release is stated as vendor revenue for a server system. IDC presents data in vendor revenue to determine market share position. Vendor revenue represents those dollars recognized by multi-user system and server vendors for ISS (initial server shipment) and upgrade units sold through direct and indirect channels and includes the following embedded server components: Frame or cabinet and all cables, processors, memory, communications boards, operating system software, other bundled software and initial internal and external disk shipments.

IDC's Quarterly Server Tracker is a quantitative tool for analyzing the global server market on a quarterly basis. The Tracker includes quarterly unit shipments and revenues (both vendor revenue and value of shipments), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture. For more information, please contact Lidice Fernandez at 305-351-3051 or lfernandez@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of IDG, the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.

All product and company names may be trademarks or registered trademarks of their respective holders.



Contact:

IDC
Kuba Stolarski, 508-935-4172
Email Contact
or
Lloyd Cohen, 508-935-4333
Email Contact
or
Michael Shirer, 508-935-4200
Email Contact



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