Growth Forecasted to Moderate Throughout 2019

“The server market had a spectacular run over the last six quarters,” said Baron Fung, Director at Dell’Oro Group. “Higher server average selling prices due to richer configurations were enabled by the Xeon Scalable platform, driving revenue growth. In addition, strong unit growth extending across the cloud and enterprise sectors propelled the server market to $76 Billion in 2018, an all-time high. However, momentum appeared to ease in 4Q 2018, as the market approached the tail end of the enterprise server refresh cycle, and as major players in the cloud entered a consumption phase, thereby reducing the need for outsized purchases of IT equipment in 2019,” explained Fung.

Following are additional highlights from the 4Q 2018 Server Quarterly Report:

Server market revenue grew 29 percent year-over-year to $76 Billion in 2018.
Dell ranked No.1 in vendor revenue share, followed by HPE, Huawei, Inspur, IBM, and Lenovo.
Cloud hyperscale data center Capex had strong double-digit growth in 2018, resulting in an all-time high for white box server shipments. Slower growth is projected in 2019.