Q4 Server Revenue Up Nearly 2%
NEEDHAM, MA – Vendor revenue in the worldwide server market grew 1.5% year-over-year to $25.8 billion during the fourth quarter. Worldwide server shipments declined 3% year-over-year to nearly 3.3 million units, according to International Data Corp.
Volume server revenue was up 3.7% to $20.4 billion. Midrange server revenue also increased 8.4% to $3.3 billion, while high-end servers declined 21.8% to $2.1 billion.
"Global demand for enterprise servers was relatively flat during the fourth quarter of 2020, with the strongest increase to demand coming from China," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "From a regional perspective, server revenue within PRC grew 22.7% year-over-year, while the rest of the world declined 4.2%. Blade systems continued to decline, down 18.1%, while rack optimized servers grew 10.3% year-over-year. Similar to the previous quarter, servers running AMD CPUs, as well as ARM-based servers, continued to grow revenue, increasing 100.9% and 345% year-over-year respectively, albeit on a small but growing base."
HPE/New H3C Group and Dell Technologies were tied for the top position in the worldwide server market based on fourth quarter revenues. Inspur/Inspur Power Systems finished third, while IBM held the fourth position. Huawei and Lenovo tied for the fifth position.
In terms of server units shipped, Dell Technologies held the top position in the market, followed closely by HPE/New H3C Group in the second position. Inspur/Inspur Power Systems, Huawei, and Lenovo finished the quarter in third, fourth, and fifth place, respectively.
On a geographic basis, China was the fastest growing region, with 22.7% year-over-year revenue growth. Latin America was the only other region with revenue growth in the fourth quarter, up 1.5%. Asia/Pacific (excluding Japan and China) decreased 0.3%, while North America declined 6.2% year-over-year (Canada at 23.7% and the US at 5.5%). Both EMEA and Japan declined during the quarter at rates of 1.1% and 6.3%, respectively.
Revenue generated from x86 servers increased 2.9% to around $23.1 billion. Non-x86 server revenue declined 9% year-over-year to around $2.8 billion.
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