Worldwide server revenue grew 7.5 per cent in Q3 2015

In the third quarter of 2015, worldwide server shipments grew 9.2 per cent from the third quarter of 2014, while vendor revenue increased 7.5 per cent year over year, Gartner reported today.

From the regional standpoint, Asia/Pacific grew the most in shipments, with a 23.8 per cent increase. The region also posted the highest vendor revenue growth at 25.4 per cent for the period.

HP continued to lead the worldwide server market based on revenue (see Table 1). The company posted just over $3.7 billion in server vendor revenue for a total market share of 27.3 per cent for the third quarter of 2015.

All of the top five global vendors had revenue increases for the third quarter of 2015, except for IBM with a decline of 42.8 per cent. IBM’s decline is due primarily to its sale of its x86 server business to Lenovo. Beyond that, IBM’s server revenue fell 3.1 per cent for the RISC segment, but grew 15 per cent for mainframes to post a 5.1 per cent total growth in the third quarter for the server businesses that it retained.

Company 3Q15

Revenue

3Q15 Market Share (%) 3Q14

Revenue

3Q14 Market Share (%) 3Q15-3Q14 Growth (%
HP 3,682,417,477 27.3 3,374,559,864 26.9 9.1
Dell 2,419,231,403 17.9 2,219,989,943 17.7 9.0
IBM 1,327,761,197 9.8 2,322,409,499 18.5 -42.8
Lenovo 1,065,664,119 7.9 165,166,098 1.3 545.2
Cisco 885,600,000 6.6 783,760,000 6.2 13.0
Others 4,120,053,348 30.5 3,690,687,782 29.4 11.6
Total Market 13,500,727,544 100.0 12,556,573,186 100.0 7.5

In server shipments, HP remained the worldwide leader in the third quarter of 2015 with a year-over-year shipment increase of 7.7 per cent (see Table 2). HP's worldwide server shipment market share was 22.2 per cent, virtually the same share as in the third quarter of 2014.

All of the top five vendors in server shipments worldwide produced shipment increases in the third quarter of 2015, with Lenovo recording the largest growth of 183.2 per cent.

TABLE 2

Company 3Q15

Shipments

3Q15 Market Share (%) 3Q14

Shipments

3Q14 Market Share (%) 3Q15-3Q14 Growth (%)
HP 613,101 22.2 569,426 22.5 7.7
Dell 501,262 18.1 490,752 19.4 2.1
Lenovo 242,005 8.8 85,443 3.4 183.2
Huawei 134,163 4.9 93,421 3.7 43.6
Inspur 99,417 3.6 91,244 3.6 9.0
Others 1,172,725 42.4 1,200,592 47.4 -2.3
Total Market 2,762,672 100.0 2,530,878 100.0 9.2

In EMEA, server shipments totalled 533 million units and grew 1.4 per cent (see Table 4) in the third quarter of 2015. Server revenue totalled $3.0 billion, an increase of 3.7 per cent (see Table 3).

In shipment terms, HP saw its share increase in the third quarter of 2015 and managed to maintain the No. 1 position. Dell held second place as its share of shipments also increased year over year thanks to executing well as a privately held company. HP, Dell and Cisco have all benefitted from Lenovo taking over IBM's x86 server business. Lenovo moved to the No. 3 position, but its market share remained below that of IBM's x86 business of a year ago.

In revenue terms, HP and IBM were the only top five server vendors to exhibit a decline in the third quarter of 2015. IBM lost two positions year over year, while Cisco narrowly moved ahead of IBM. Cisco benefitted from continued demand for blade servers, while IBM's mainframe refresh slowed during the quarter.

TABLE 3

Company 3Q15

Revenue

3Q15 Market Share (%) 3Q14

Revenue

3Q14 Market Share (%) 3Q15-3Q14 Growth (%)
HP 1,146,595,287 38.5 1,165,314,324 40.6 -1.6
Dell 504,411,600 17.0 453,965,225 15.8 11.1
Lenovo 256,708,306 8.6 15,446,989 0.5 1561.9
Cisco 209,760,000 7.0 161,460,000 5.6 29.9
IBM 206,419,270 6.9 440,807,656 15.4 -53.2
Others 651,559,257 21.9 631,266,383 22.0 3.2
Total Market 2,975,453,720 100.0 2,868,260,577 100.0 3.7

TABLE 4

Company 3Q15

Shipments

3Q15 Market Share (%) 3Q14

Shipments

3Q14 Market Share (%) 3Q15-3Q14 Growth (%)
HP 207,646 39.0 203,294 38.7 2.1
Dell 106,619 20.0 107,965 20.5 -1.2
Lenovo 34,577 6.5 7,191 1.4 380.8
Fujitsu 27,250 5.1 29,941 5.7 -9.0
Cisco 21,366 4.0 16,705 3.2 27.9
Others 135,647 25.4 160,695 30.6 -15.6
Total Market 533,106 100.0 525,791 100.0 1.4