According to a new report by research firm Gartner, global server market revenue increased 25.7 percent in the fourth quarter of 2017, while shipments grew 8.8 percent year over year.
In all of 2017, worldwide server shipments grew 3.1 percent and server revenue increased 10.4 percent compared with full-year 2016, Gartner said.
Server growth was driven by relatively strong economies for the quarter across the globe," said Jeffrey Hewitt, research vice president at Gartner.
Hewitt said, "This was a somewhat surprising quarter because the strength was exhibited in a variety of positive server shipment and revenue mixes in almost all geographies."
Regional results were a mixed bag. North America and Asia/Pacific were particularly robust demonstrating double-digit growth in revenue (27.6 percent and 35.1 percent, respectively). In terms of shipments, North America grew 9.7 percent and Asia/Pacific grew 21.2 percent. EMEA posted strong yearly revenue growth of 19.9 percent while shipments decreased 7.9 percent. Japan grew 4.8 percent in revenue but declined 5.1 percent in shipments. Latin America was the only region to exhibit a decline in both shipments (negative 4.7 percent) and revenue (negative 2.9 percent) in the fourth quarter of 2017.
The report pointed out that Dell EMC and Hewlett Packard Enterprise (HPE) were neck-and-neck in the worldwide server market based on revenue in the fourth quarter of 2017 Dell EMC ended the year in the No. 1 spot with 19.4 percent market share, followed closely by HPE with 19.3 percent of the market.
Dell EMC experienced strong growth in the quarter with 39.9 percent growth. HPE grew 5.5 percent. Inspur Electronics experienced the strongest growth in the fourth quarter of 2017 with 127.8 percent growth.
This was a somewhat surprising quarter because the strength was exhibited in a variety of positive server shipment and revenue mixes in almost all geographies," Hewitt added.
The x86 server market increased in revenue by 23.7 percent and shipments were up 8.9 percent in the fourth quarter of 2017, the market research firm added.