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Is HPE Losing Its Hold on the Server Space?

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HPE continues to lead the server space

Earlier in the series, we discussed growth in the server space, factors driving this growth, and emerging trends in this space. Let’s look into the key players’ revenue, market share, and position in the global server space.

With revenue and market shares of $3.1 billion and 21.3%, respectively, in 3Q17, HPE (HPE) continued to be a leader in the global server space. It was closely followed by Dell, which had a market share of 20.8% and revenues of $3.1 billion. According to Gartner, International Business Machines (IBM), Inspur Electronics, and Cisco Systems (CSCO) occupied the third, fourth, and fifth spots, respectively, in this space. These companies had a market share of 7.7%, 7.4%, and 6.8%, respectively. Thus, about two-thirds of global server  space is dominated by five players. 

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HPE lost the most market share

As the above presentation by Gartner shows, HPE despite being a market leader reported the most decline in its market share. Its market share fell 3.2% from 25.5% in 3Q16 to 21.3% in 3Q17. It is facing a severe threat from Dell EMC, which has increased its market share from 17.5% in 3Q16 to 20.8% in 3Q17. The increased integration of its storage and server teams has benefitted Dell.

The z14 mainframe launch is likely to have helped IBM in increasing its market share in 3Q17. Cisco, which faces a severe threat from white box manufacturers, saw its market share fall from 7.3% in 3Q16 to 6.8% in 3Q17.

Inspur Electronics reported the most growth among the top five players and replaced Huawei in the top five players in server space. Moreover, it was the only vendor in the top five to experience positive growth in shipments in 3Q17.

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