In addition to the table above, an interactive graphic showing worldwide market share (based on revenue) for the top 5 server vendors over the previous five quarters is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.
"This quarter we saw well-established trends continue, such as the ongoing market shift towards x86 platforms over non-x86 large systems," said Jorge Vela, senior research analyst, Computing Platforms. "In the x86 market, tower servers continue to lead declines among form factors, while rack and density-optimized servers continue their steady growth as hyperscalers expand their reach and offerings. Globally, the China market continues its steady rise, growing at an impressive 19.2% for the quarter and fueling much of the growth in the Asia/Pacific region. Other significant findings include the flattening of Cisco's growth after years of steady increases and the return of double-digit ODM Direct growth after a brief pause in 2016Q1."
Top Server Market Findings
Regionally, Asia/Pacific (excluding Japan)(APeJ) experienced the highest revenue growth with a year-over-year increase of 7.4% in 2Q16. Within APeJ, China once again drove growth in the entire market with year-over-year revenue up 19.2% to $2.3 billion. All other regions declined. The United States and Canada experienced slight declines at 0.7% and 0.6%, respectively. Central and Eastern Europe (CEE) declined 1.3% and Western Europe declined 3.2%. Japan, Middle East and Africa (MEA) and Latin America experienced the largest year-over-year revenue declines, with 10.1%, 8.5% and 7.5% declines, respectively.
Demand for x86 servers improved in 2Q16 with revenues increasing 7.3% year over year in the quarter to $11.6 billion worldwide while unit shipments increased 2.7% to 2.3 million servers. HPE led the x86 server market with 28.0% revenue share based on 0.3% year-over-year revenue growth. Dell retained second place, securing 22.4% revenue share following 10.0% year-over-year revenue growth.
Non-x86 servers experienced a revenue decline of 31.1% year over year to $1.9 billion, representing 13.9% of quarterly server revenue. IBM leads the segment with 70.6% revenue share despite a 34.0% year-over-year revenue decline. IDC also continued to track minimal revenue from ARM-based server sales in 2Q16; ARM sales have yet to make an impact on the server market.
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 Worldwide 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.
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