Gartner: 31.5% Worldwide Server Market Growth in Third Quarter, Inspur, DELL and HPE Maintain Top 3

BEIJING, Jan. 3, 2019 — (PRNewswire) — Gartner has released its market survey report on the worldwide server market in the third quarter of 2018. The report shows that global server shipments reached 3.183 million units, with sales of $19.39 billion USD, up by 12.5% and 31.5% YOY, respectively, showing strong recovery. Dell EMC, HPE and Inspur remain the top three enterprises in terms of global shipments and sales. Inspur's shipments and sales have maintained the fastest growth rate, with shipments and market share increasing by 57.2% and 10.1% YOY respectively. Globally, Inspur had the industry's highest growth rate in 13 quarters out of the past 19.

In terms of regional growth, server markets around the globe with the exception of Latin America and Eastern Europe saw significant growth, all reaching double digits. Greater China and North America played a major role in boosting global growth, with sales increasing by 44.6% and 39.6% YOY, marking a significant increase in market share, reaching 26.7% and 41.7%, respectively.

As the most developed regions in terms of digital economy, procurement by Internet companies in North America and Greater China is an important driver for market growth. According to Gartner, in this quarter, Inspur witnessed significant sales growth in North America, Western Europe, Eastern Europe and Japan, reaching 965.5%, 314.5%, 504.4% and 700.2% YOY, respectively. This development is closely related to Inspur's efforts at globalization in recent years. Currently, Inspur's business covers 113 countries and regions, with 8 global R&D centers, 6 global production centers and 2 global service centers.

In terms of product type, multi-node and rack-mounted servers have seen strong growth, with sales up by 75.2% and 31.1% YOY, respectively. Sales of blade and tower servers continued to shrink slightly, with sales down by 3.7% and 4.8% YOY, respectively. The growth of multi-node servers is mainly driven by procurement from Internet companies, while the growth of rack-mounted servers is due to the strong recovery of traditional enterprise procurement.

Inspur is currently in the midst of expanding its presence in global Internet companies with its JDM model. Six of the world's top 10 CSP companies regularly purchase Inspur servers. In this quarter, Inspur has seen faster growth in sales in the global traditional enterprise market. Rack-mounted server sales increased by 155.5% YOY, with a market share of 14.5%.

The global server market saw a long period of sluggish growth following the global financial crisis in 2008. In recent quarters, however, a strong trend towards recovery has begun. Professionals believe that the Internet- and AI-based transformation of traditional enterprises is one of the main factors behind this trend, driven by the recovery of the global traditional enterprise markets. With the development of technologies such as cloud, big data and AI, new requirements of intelligent transformation in the traditional enterprise market are boosting demand for new servers.

This Internet-based transformation of traditional enterprises is itself a byproduct of the development of intelligent computing and the traditional information society's move towards an intelligent era. Today, global Internet companies and traditional enterprises are heavily investing in IT infrastructure to adapt their core business capabilities for an increasingly intelligent future. As a leading technology provider, Inspur's intelligent computing solutions are key to supporting the industry's transformation.

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SOURCE Inspur Electronic Information Industry Co., Ltd

Company Name: Inspur Electronic Information Industry Co., Ltd
Constance Zhang
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