Gartner, a leading research and advisory firm providing IT related insight, recently reported the third quarter of 2017 saw worldwide server revenue grow by a significant 16 percent year over year with unit shipments increasing by just 5.1 percent from the third quarter of 2016. This growth indicates high-end server solutions as the primary driver of sales rather than cheaper, commodity vendors.
“The third quarter of 2017 produced continued growth on a global level with varying regional results,” said Jeffrey Hewitt, research vice president at Gartner. “A build-out of infrastructure to support cloud and hybrid-cloud implementations was the main driver for growth in the server market for the period.”
This need, driven by increased demand for capacity and new servers, coincides with industry giants Hewlett Packard Enterprise (HPE), Dell EMC, and Lenovo releasing new and improved hardware solutions, helping to drive sales as enterprise companies look to upgrade onsite hardware coming into the new year.
At the front of the pack are HPE and Dell. HPE continues to lead the worldwide server market with $3.1 billion in revenue and a total share of 21 percent for 2017’s third quarter. Dell leads with unit shipments, holding 17.8 percent market share to HPE’s 16.7 percent.
While the release of new and improved hardware for enterprise is helping fuel the fire, there’s still more to the story behind these high returns.
DRAMeXchange, a division of market researcher TrendForce, reports the demand for servers has exploded due to industrial transformation and growing demand for smart end devices. In other words, the market is catching on to the significance of Internet of Things (IoT).
The struggle to meet this demand lies with manufacturers as they struggle to meet increasing capacity needs with a shortage of dynamic random-access memory (DRAM). The result? Prepare yourself. The 85 percent increase in DRAM prices in 2017 won’t be slowing down anytime soon.