FRAMINGHAM, MA – Vendor revenue in the worldwide server market increased 43.7% year-over-year to $22.5 billion during the second quarter, said International Data Corp. Worldwide server shipments increased 20.5% to 2.9 million units.

The second quarter marked the fourth consecutive quarter of double-digit revenue growth and its highest total revenue ever, says IDC. Volume server revenue increased 42.7% to $18.4 billion, while midrange server revenue grew 63% to $2.5 billion. High-end systems grew 30.4% to $1.7 billion.

"The worldwide server market continues to flourish amid a market-wide enterprise refresh cycle and increasing demand from cloud service providers," said Sanjay Medvitz, senior research analyst, Servers and Storage at IDC. "Enterprises continue to invest in new infrastructure to support next-generation applications and achieve cloud-like benefits on premise. Hyperscalers also continue to update and expand their data center presence, benefiting ODM direct suppliers. Server revenue growth has also been driven by increasing average selling prices. This is due to richer configurations, DRAM prices, and new processor platforms."

During the quarter, Dell achieved the number one position in the worldwide server market for the first time, with 18.8% revenue share and 52.9% growth. HPE/New H3C Group was the second largest supplier, with 16.6% share of total vendor revenue, growing 11.7%. IBM and Lenovo were statistically tied for third place, with respective shares of 7.3% and 6.9%. Inspur, Cisco, and Huawei rounded out the top five, all statistically tied, with 4.8%, 4.8%, and 4.3% respective shares of vendor revenue. The ODM direct group of vendors increased its collective revenue 55.9% year-over-year to $5.5 billion. Dell led the worldwide server market in unit shipments, accounting for 19.5% of all units shipped during the quarter.

On a geographic basis, Asia/Pacific (excluding Japan) was the fastest growing region in the second quarter, with 55% year-over-year revenue growth. China grew 69.7%; the US grew 48.1%; Latin America grew 47.4%; Europe, the Middle East and Africa (EMEA) grew 28.9%; Canada grew 19.9%, and Japan grew 16.5%.

Demand for x86 servers increased 44.1%, with $20.5 billion in revenues. Non-x86 servers grew 39.8% year-over-year to $2.1 billion.

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