Vendor revenue in the worldwide server market grew 2,2% year over year to $22,6-billion during the third quarter of 2020 (3Q20).
According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, worldwide server shipments declined 0,2% year over year to nearly 3,1-million units in 3Q20.
Volume server revenue was up 5,8% to $19-billion, while midrange server revenue declined 13,9% to $2,6-billion, and high-end servers declined by 12,6% to $937-million.
“Global demand for enterprise servers was a bit muted during the third quarter of 2020 although we did see areas of strong demand,” says Paul Maguranis, senior research analyst: Infrastructure Platforms and Technologies at IDC. “From a regional perspective, server revenue within China grew 14,2% year over year. And worldwide revenues for servers running AMD CPUs were up 112,4% year over year while ARM-based servers grew revenues 430,5% year over year, albeit on a very small base of revenue.”
Dell Technologies and HPE/New H3C Group were tied for the top position in the 3Q20 worldwide server market with 16,7% and 15,9% revenue share respectively. Inspur/Inspur Power Systems finished third with a 9,4% share of revenue. Lenovo was fourth with a 5,9% share and Huawei was fifth with a 4,9% share. The ODM Direct group of vendors accounted for 28% of total server revenue, up 8,4% year over year.
On a geographic basis, China was the fastest growing region at 14,2% year over year. Asia/Pacific (excluding China and Japan) increased 3%, while Latin America and North America grew 1,5% and 1,8% year over year, respectively (Canada at 13,1% and the US at 1,5%). Both EMEA and Japan declined during the quarter at rates of 4,9% and 21,4%, respectively.
Revenue generated from x86 servers increased 1,6% in 3Q20 to just below $21-billion. Non-x86 server revenue grew 10,4% year over year to around $1,6-billion.