Hardware segment revenues fell again
Earlier in this series, we discussed the persistent decline in the server market’s revenues and shipments. Let’s see how Oracle’s Hardware segment performed in fiscal 4Q17.
In fiscal 4Q17 and fiscal 2017, Oracle’s (ORCL) Hardware segment reported revenues of ~$1.1 billion and ~$4.2 billion, respectively. This represents a respective 13% and 11% fall on a YoY (year-over-year) basis. In constant currency terms, the segment saw a 12% and 10% fall in revenues, respectively.
Server market decline impacted Oracle’s hardware segment
As the chart above shows, the Hardware segment’s contribution to the company’s overall revenues has touched an all-time low in at least the last three years. Oracle’s Hardware segment encompasses high-performance databases, servers, and storage. This segment has been declining in the last few years, as the server market has also experienced a consistent decline.
Oracle is the undisputed leader in the DBMS space. However, it is not immune to the threat posed by Microsoft (MSFT) and Amazon (AMZN), which are increasingly expanding their database offerings. Oracle peers’ database migration services have enhanced the competition in the database space, as they have increased users’ awareness of—and support for—the migration concept.
HPE leads player in a falling server market
Hewlett Packard Enterprise (HPE) retained its leading position in the server space. Both Gartner and IDC placed HPE as the leader in terms of revenues, followed by Dell.
However, Gartner and IDC differed when it came to the rest of the top five players. Gartner positioned International Business Machines (IBM), Cisco (CSCO), and Lenovo (LNVGY) at the third, fourth and fifth positions, respectively. In contrast, IDC placed IBM, Cisco, and Lenovo in a three-way tie for third place.