Gartner predicts COVID-19 will negatively impact worldwide server market for 2020

According to a Gartner report on server revenue and shipment data for Q4 of 2019, server revenue was up 5.1% and shipments increased 11.7%.

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A new report from Gartner revealed worldwide server growth in the fourth quarter of 2019, as revenue increased 5.1% and shipments grew 11.7%, with volume totaling more than 3.87 million units. For the entirety of 2019, worldwide server shipments declined 3.1%, and server revenue declined 2.5% when compared to all of 2018. But the impact of COVID-19 will undoubtedly affect the 2020 server market.

“The market returned to growth with a very strong fourth quarter result, largely driven by a return of demand from hyperscalers,” said Adrian O’Connell, senior research director at Gartner. 

SEE: How COVID-19 is disrupting the enterprise and what you can do about it (TechRepublic Premium)

“However, the outlook for the worldwide server market in 2020 is subject to great uncertainty. The impact of the coronavirus (COVID-19) outbreak is expected to temper forecast growth. Although demand from the hyperscale segment is expected to continue through the first half of the year, other buying organizations’ reactions will vary.”

For 2019, Dell EMC topped both the revenue (20.5% market share) and shipment (16.3% market share) charts, with HPE coming in second with 17.3% market share in revenue and 12.3% market share in shipment.

Only one vendor in the top five for 2019 grew in both revenue and shipments: Inspur Electronics. 


Image: Gartner

Worldwide server vendor revenue 4Q19

  1. Dell EMC (despite a 9.9% decline in all of 2019)
  2. HPE
  3. IBM (strongest growth for 4Q19, up 28.6%)
  4. Inspire Electronics
  5. Huawei
  6. Others

SEE: Coronavirus: More must-read coverage (TechRepublic on Flipboard)


Image: Gartner

Worldwide server vendor shipment 4Q19

  1. Dell EMC (14.2% market share)
  2. HPE (10.8% market share)
  3. Inspire Electronics
  4. Huawei
  5. Lenovo (with 22.4% shipment increase, strongest growth for 4Q19)
  6. Others

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Image: Getty Images/iStockphoto

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