The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →IDC’s March 12, 2020 results showed a recovering worldwide server market in 4Q19: revenue rose 7.5% year over year to $25.3519 billion, while shipments increased 14.0% to 3,403,323 units. Dell still led shipments, Inspur grew in both revenue and units, and Lenovo’s shipment surge came alongside declining revenue—not revenue growth.
What did IDC’s 4Q19 server tracker say about Dell, Inspur and Lenovo?
The vendor results tell different stories depending on whether you compare revenue or shipments. IDC also groups certain companies together for its global rankings: HPE with New H3C since 2Q16, and Inspur with Inspur Power Systems since 3Q18, reflecting their respective joint ventures.
| Vendor grouping | Revenue and revenue share | Shipments and shipment share | Year-over-year change |
|---|---|---|---|
| Dell Technologies | Statistically tied for first with HPE/New H3C; 15.7% share | 549,488 units; 16.1% share; shipment leader | Shipments down 5.4%; revenue change not stated in the release summary |
| HPE/New H3C | 16.3% share; statistically tied with Dell for first | Unit total and shipment share not stated in the release summary | Not stated in the release summary |
| Inspur/Inspur Power Systems | $1,736.1 million; 6.8% share | 270,567 units | Revenue up 12.1%; shipments up 9.3% |
| Lenovo | $1,417.6 million | 233,896 units | Revenue down 2.6%; shipments up 22.6% |
IDC defines vendors within one percentage point of revenue share as statistically tied. Dell’s 15.7% and HPE/New H3C’s 16.3% differ by 0.6 percentage points, so IDC treated them as statistically tied for first in revenue share. That does not change Dell’s distinct lead in unit shipments.
Dell: shipment leader, but down year over year
Dell shipped 549,488 servers, more than any other vendor in the reported quarter, but that count was 5.4% below 4Q18. Its revenue share was 15.7%, statistically tied with HPE/New H3C’s 16.3%; the two rankings measure different things and should not be conflated.
Recommended Free Tools
#1 Best Overall
- Dell PowerEdge R730xd 24B SFF 2U Server
- 2x Intel Xeon E5-2690 v4 2.6Ghz 14-Core (28-cores Total)
- 128GB DDR4 RAM – 4x 1.2TB 10K SAS 2.5” 12Gb/s
- Dell H730P mini 2GB 12Gb/s RAID
- 2x 750W PSU - 2x 10Gb SFP+ 2x 1Gb (RJ45) NIC
Inspur: growth in revenue and shipments
IDC’s combined Inspur/Inspur Power Systems grouping generated $1,736.1 million in revenue, with 6.8% share and 12.1% year-over-year growth. It shipped 270,567 units, an increase of 9.3%.
Lenovo: more units, less revenue
Lenovo shipped 233,896 servers, up 22.6%, while its revenue fell 2.6% to $1,417.6 million. The quarter therefore showed a sharp gain in Lenovo’s shipment volume, not a revenue surge. The figures alone do not establish why revenue declined as units rose.
Why did server shipments grow faster than revenue?
Shipments rose 14.0% worldwide, compared with 7.5% revenue growth. The results point to a changing mix of vendors and server categories rather than a uniform expansion across the market. IDC said robust hyperscaler demand benefited ODM Direct, while strong purchases of non-x86 servers also contributed to overall growth.
Rank #2
- Renewed server with the highest quality standards
- Ideal for a robust enterprise environment or data center
- All servers include power cords, and other parts detailed in full product description below
- Custom configurations available upon request
ODM Direct—vendors selling directly to hyperscale customers—recorded $6,470.9 million in revenue, up 37.9%, and 1,054,743 shipments, up 53.0%. That was 25.5% of market revenue and 31.0% of shipments. Its much faster growth in units than in revenue is consistent with shipment volume rising faster than the market’s total dollars, though it does not by itself explain every vendor’s revenue trend.
Server-class results were also uneven: volume-server revenue grew 12.1% to $19.7 billion, midrange revenue declined 14.1% to $3.3 billion, and high-end revenue rose 8.9% to $2.4 billion. By architecture, x86 revenue increased 6.3% to $22.4 billion, while non-x86 revenue grew 17.7% to just under $3.0 billion. IDC described the quarter as a mixed recovery, noting that 4Q18 had been an unusually difficult comparison period after many OEMs recorded double-digit growth on large revenue bases.
What the 4Q19 results do—and do not—show
These are historical worldwide figures for the fourth quarter of 2019, published by IDC on March 12, 2020; they are not current market rankings. IDC’s vendor revenue measure covers dollars recognized by multi-user system and server vendors for initial server shipments and upgrades through direct and indirect channels, including bundled system components and software.
Rank #3
- Dell 13th Generation Rack Mount 1U 8-Bay 2.5" SFF Server
- Enterprise Server For Home Use
- 2x Intel Xeon Processor E5-2690 v4 2.60GHz 14-Core CPUs
- 128GB PC4-2133 DDR4 Memory
- 2x 1TB 2.5" SATA SSDs - Solid State Drives -
A separate ServeTheHome analysis calculated an approximately 6% overall decline in average selling prices and a steeper decline for Lenovo. Those are the publication’s derived estimates, not standalone IDC press-release statistics, and they do not establish the cause of Lenovo’s revenue change. They should be treated as analysis of 4Q19, not guidance for buying current servers.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Regional revenue was mixed
IDC reported year-over-year revenue growth in Canada (19.3%), Latin America (19.0%), the United States (15.5%), Japan (5.2%), Asia/Pacific excluding Japan (4.2%), and China (6.7%). EMEA revenue declined 5.2%. These regional rates describe revenue, not unit shipments.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
