REDWOOD CITY, Calif., March 19, 2018 -- According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, Enterprise server demand remained soft in 4Q17. High memory costs contributed to a slower than expected Purley refresh cycle, resulting in the decline in the Enterprise market.
“Server average selling prices are now at an all-time high, which we believe contributed to the softening of Enterprise demand,” said Baron Fung, Senior Analyst at Dell’Oro Group. “Persistent high memory costs have caused server vendors to pass on the cost increases to end-users in the form of higher system prices. Also, the Purley refresh cycle ramp has been slower as end-users wait for pricing to stabilize. Based on the updated consensus that the memory costs will ease in 2018, we expect Enterprises to resume spending on servers and carry on with the Purley refresh,” explained Fung.
Additional highlights from the 4Q17 Server Quarterly Report:
- Dell is now the OEM server market leader, displacing HPE in both revenue and volume. The remaining OEM server vendors in 4Q17 by revenue were Hewlett Packard Enterprise, IBM, Huawei, and Lenovo.
- The momentum in the Cloud continues unabated, as Cloud service providers ended 2017 with an unprecedented expansion of new data centers. In 4Q17, server shipments to the top four Cloud providers (Google, Amazon, Microsoft, Facebook) grew 19 percent year-over-year. Server shipments to the rest of the Cloud grew 29 percent year-over-year.
About the Report
Dell’Oro Group’s Server Quarterly Report provides complete, in-depth coverage of the market with tables covering manufacturers’ revenue, unit, and port shipments for Blade, High-Density and Stand-Alone servers. Network attach rates, virtualization attach rates and VM density, common equipment overlap between storage, servers and switching, and white box versus traditional enterprise server shipments are included. To purchase this report, contact Matt Dear at +1.650.622.9400 x223 or email [email protected].
About Dell’Oro Group
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
Media Contact: Matt Dear
Phone: +1.650.622.9400 x223
Email: [email protected]


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