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Cloud Server Shipments Slow in 1H16, Expected to Accelerate in 2H16

| August 31, 2016

According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, server shipments floundered in the first half of 2016 compared to the same period in 2015. Shipments to Cloud data centers are expected to accelerate in the second half of the year.

“In line with our expectations, server sales declined in the first half of the year as major tailwinds tapered down – such as IBM’s Z13 refresh cycle, as well as richer configurations on Grantley-based enterprise servers,” said Sameh Boujelbene, Director at Dell’Oro Group. “Meanwhile, Cloud data centers remain a bright spot in this mature server market, albeit helping shipments instead of revenue. We expect Cloud server shipment growth to accelerate in the remaining half of the year as major Cloud providers are planning more data center expansions and buildouts than the first half of the year,” added Boujelbene.

Highlights from the 2Q16 Server Quarterly Report include:

  • Amazon and Microsoft contributed the most to Cloud server shipment growth during the quarter.
  • Growth in specific Cloud providers, as well as the geolocations of their new data centers, benefited not only white box server vendors, but also some traditional U.S.-based vendors.
  • China grew the strongest among the regions tracked. While it remains dominated by Chinese vendors, some U.S.-based leading vendors are making headway in the Chinese server market.

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Category: Featured Reports

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