Hyper Converged infrastructure cut shorts server market growth

Gartner’s recent survey reveals that hyper converged infrastructure builds have cut short the growth of server markets in recent times. The overall decline in server revenue reflects the fact that the average price of hardware has fallen during the past 12 months.

Though there is a decline in revenue in first quarter of 2016, a trend of low level shipments growth on a global level with variation in results by region has been witnessed. This trend clearly suggests that drop in revenues in the light of shipment increases demonstrates that the servers that shipped during the period had lower average selling prices than those that shipped in the same time frame last year.

Gartner also specified that enterprises and SMBs are looking to cut their hardware costs by moving their infrastructure off-premise with the help of cloud computing. And cloud providers are depending on hyper scale server kits to suffice to demand.

In terms of server suppliers, Hewlett Packard Enterprise (HPE) retained its position as the worldwide server market leader based on revenue, with a 25.2% share, and was the only firm in the top five to achieve growth. Dell (17.3%) stood on second position, followed by IBM (9.7%). In fourth and fifth places were Lenovo and Cisco, with market shares of 6.7% and 6.5%, respectively.

Let us see where this trend will head in coming months.

Want to share your views on the Gartner predicted trend? You can do it through comments section below.

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