Hardware

Dell holds onto No. 2 spot in server market, latest data show

Posted March 10th, 2016

Dell Inc.'s server division had 4.5 percent revenue growth in the fourth quarter, but saw a slight drop in number of units shipped, according to a new report.  

According to technology industry research firm Garner, worldwide server revenue increased 8.2 percent year over year, while shipments grew 9.2 percent over the fourth quarter. For all of 2015, worldwide server shipments grew 9.9 percent and server revenue increased 10.1 percent, according to Gartner.  

Round Rock-based Dell Inc. shipped 527,736 servers during the fourth quarter, a .3 percent decline from the same quarter in 2014, when the company shipped 529,411 servers, according to Gartner. That trailed only Hewlett Packard Enterprise, which shipped 625,543 servers during the quarter, according to Gartner.  

Dell Inc. is the largest private employer in the Central Texas region with about 13,000 local employees.  

Dell Inc.Dell Inc.’'ss PowerEdge M1000e blade server.

Dell Inc.'s server business had revenue of $2.53 billion in the fourth quarter, holding at No. 2 behind Hewlett Packard Enterprise, which had server revenue of $3.8 billion, according to Gartner.  

“Dell continues to grow and maintain a leadership position in the important x86 server category,” Brian Payne, executive director of Dell PowerEdge servers, said by email. “Our advanced line-up of servers cater to industries ranging from web tech to (telecommunications companies) to oil & gas companies, which have contributed to Dell gaining revenue share.”  

Hewlett Packard Enterprise continued to lead the server market, but saw a revenue drop of 2.2 percent over the fourth quarter and negative server shipment growth rate of 2.6 percent. Hewlett Packard Enterprise was formed in 2015 when Hewlett Packard split into two companies. Hewlett Packard Enterprise operates H-P's former server, storage, networking and IT services business.  

North America had the second-highest growth rate worldwide in terms of unit shipment with a growth rate of 8.5 percent, falling behind the Asia/Pacific region, which had 20.1 percent rate of growth. Western Europe came in third with a growth rate of 4.3 percent, according to the Garner report.  

Vendor revenue in the fourth quarter was down worldwide except for the Asia/Pacific region, North America and Western Europe, with growth of 19.7 percent, 9.7 percent and 8.0 percent, respectively.

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