Vendor revenue in the overall worldwide computing server market declined 4.6 percent year-over-year to $14.6 billion in the fourth quarter of 2016 (4Q16), according to the latest market study by International Data Corporation (IDC). Server market growth has slowed in part due to maturity of the hyperscale data center growth, and from declining high-end server deployments. In addition, the enterprise refresh cycle of 2015 had created less demand in 2016. Worldwide server shipments decreased 3.5 percent to 2.55 million units in 4Q16 when compared with the same year-ago period. Computing Server Market Development On a year-over-year basis, volume and mid-range system revenue decreased 3.3 percent and 6.1 percent in 4Q16 to $11.2 billion and $1.4 billion, respectively. Server demand across the enterprise market was soft for the quarter. Meanwhile, 4Q16 demand for high-end systems experienced a year-over-year revenue decline of 10.7 percent to $2.0 billion. IDC expects continued l...
TMT Market Research and Analysis