Global server revenue declined 5.8% in 2016, HPE leads: Gartner

Worldwide server revenue declined 5.8 per cent year-over-year and shipments declined 2.6 per cent in the third quarter of 2016 compared to last year, a new report said on Wednesday.

According to market research firm Gartner, "x86 servers declined 2.3 per cent in shipments and 1.6 per cent in revenue in the third quarter of 2016."

"Server providers will need to reinvigorate and improve their value propositions to help end users justify server hardware replacements and growth if they hope to drive the market back into a positive state," said Jeffrey Hewitt, Research Vice President, Gartner.

Despite a decline of 11.8 per cent, Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market, based on revenue, with 25.5 per cent market share.

Dell declined 7.9 per cent but maintained the second spot with 17.5 per cent market share.

Lenovo secured the third spot with 7.8 per cent market share. Cisco stood fourth and IBM dropped to the fifth position and experienced the largest decline among the top five vendors.

HPE secured the top position in server shipments in the third quarter of 2016, with 18.3 per cent of the market.

Despite a decline of 9.8 percent, Dell secured the second spot with 16.8 per cent market share.

--IANS

anuj/na/dg