Friday, 20 March 2020 14:58

Australian server revenues, shipments decline

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Australian server revenues decreased 5.1% in the fourth quarter of 2019, while shipments declined 6.5% year over year, according to a new analyst report.

In contrast, the worldwide server market continued to grow in the fourth quarter of 2019 as revenue increased 5.1% and shipments grew 11.7% year over year, according to analyst firm Gartner.

But, in all of 2019, worldwide server shipments declined 3.1% and server revenue declined 2.5% compared with full-year 2018.

“The market returned to growth with a very strong fourth quarter result, largely driven by a return of demand from hyperscalers,” said Adrian O’Connell, senior research director at Gartner.

“However, the outlook for the worldwide server market in 2020 is subject to great uncertainty. The impact of the coronavirus (COVID-19) outbreak is expected to temper forecast growth.

gartner server peter

“Although demand from the hyperscale segment is expected to continue through the first half of the year, other buying organisations’ reactions will vary.”

The report from Gartner also shows that Dell EMC secured the top spot in the worldwide server market based on revenue in the fourth quarter of 2019 - and despite a decline of 9.9% year over year, Dell EMC secured 17.3% market share, followed by Hewlett Packard Enterprise (HPE) with 15.4% of the market - while IBM experienced the strongest growth in the quarter, growing 28.6%.

“The market returned to growth with a very strong fourth quarter result, largely driven by a return of demand from hyperscalers,” said Adrian O’Connell, senior research director at Gartner.

“However, the outlook for the worldwide server market in 2020 is subject to great uncertainty. The impact of the coronavirus (COVID-19) outbreak is expected to temper forecast growth. Although demand from the hyperscale segment is expected to continue through the first half of the year, other buying organisations’ reactions will vary.”

gartner server peter two

In server shipments, Dell EMC maintained the No. 1 position in the fourth quarter of 2019 with 14.2% market share and HPE secured the second spot with 10.8% of the market.

Gartner says that both Dell EMC and HPE experienced declines in server shipments, while Lenovo experienced the strongest growth with a 22.4% increase in shipments in the fourth quarter of 2019.

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Peter Dinham

Peter Dinham - retired and is a "volunteer" writer for iTWire. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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