IDC and Gartner Q1 Sever Shipment Reports Show that Chinese Server Market is Booming, but the Global Server Market is in Depression

June 19, 2017

Both IDC and Gartner recently released their 2017 Q1 Worldwide X86 Server Market Reports.  The data indicates that the global server market is still facing a demand slump. According to IDC and Gartner, the worldwide server revenue in the first quarter of this year dropped 4.6% and 4.5% respectively. And the worldwide Top 5 server vendors in shipments are: Dell EMC, HPE, Lenovo, Huawei, Inspur.

IDC 2017 Q1 Worldwide X86 Server Revenue Ranking
IDC 2017 Q1 Worldwide X86 Server Revenue Ranking
Gartner 2017 Q1 Worldwide X86 Server Revenue Ranking
Gartner 2017 Q1 Worldwide X86 Server Revenue Ranking

 

IDC 2017 Q1 Worldwide X86 Server Shipments Ranking
IDC 2017 Q1 Worldwide X86 Server Shipments Ranking
Gartner 2017 Q1 Worldwide X86 Server Shipments Ranking
Gartner 2017 Q1 Worldwide X86 Server Shipments Ranking

China is the only growing market among all the regions. According to IDC, China’s X86 server revenue in the first quarter is 1.81 billion dollars and the shipments is 493,000 units, showing a YoY increase of 5.77% and 3.16% respectively.

IDC 2017 Q1 China X86 Server Revenue Ranking
IDC 2017 Q1 China X86 Server Revenue Ranking

According to Gartner, China’s X86 server revenue in the first quarter is 2.315 billion dollars, and the shipments is 579,000 units, experiencing a YoY increase of 9% and 4.7% respectively.

The two reports show a same result for the Top 3 server vendors in China: Inspur tops the market, followed by Huawei and Dell EMC.

Gartner 2017 Q1 China X86 Server Shipments Ranking
Gartner 2017 Q1 China X86 Server Shipments Ranking

The continuous growth of the Chinese market has been fueled by the fast development of public cloud. As Internet turns to be the largest and fastest growing field, purchase orders from China’s large internet players like Baidu, Alibaba, Tencent, and Qihoo 360 have also increased. Local server vendors in China like Inspur have been the driving force of market growth and play a dominate role in Internet operations Market. Gartner analysts believe that Inspur will have a significant influence on the development of China’s large-scale data centers. Inspur hopes to apply its successful client-centered and cost-effective business model in China’s large-scale data centers to the other regions.

AI applications, such as AI model training, are commonly adopted by many CSPs, and the emergence of larger-scale neural networks will further fuel the growth of AI computing products. Inspur has become the leader in providing AI computing platforms in China, providing co-processing accelerating servers based on GPU, FPGA, KNL, Caffe-MPI software and algorithm optimization for Baidu, Alibaba, Tencent, Qihoo, Face ++ and other Chinese artificial intelligence enterprises.

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