Despite changes in management and sales strategy, Lenovo is not changing the trends in its sales and shipment numbers for its Triangle-based server business group, a new report shows.
Year-over-year Lenovo server revenues plunged 16.5 percent in the first quarter of this year, according to research firm IDC.
IDC says sales fell to $727 million from $871.2 million.
Its market share also dropped, falling to 6.2 percent from 7 percent.
Servers shipped numbers were even worse, falling 27.3 percent to 146.1 million from 200.9 million compared to the same time period in 2016.
Three years after buying IBM’s x86 server business for some $3 billion, Lenovo continues to struggle to find a way to improve sales.
Improvement did show up in the third quarter of 2016 when Lenovo’s share grow to 8 percent from 7 percent the previous quarter. Now, the slide has resumed, according to these statistics.
Lenovo is not alone in its misery, however. Total industry server revenues dropped 3.4 percent to $9.5 billion, IDC says.
However, total shipments did increase to just of 2.2 million, up 1.4 percent.
“The server market continues to struggle to find growth,” said Kuba Stolarski, research director, Computing Platforms at IDC. “As the market prepares for the switch to Intel’s Skylake this year, we may be witnessing a shift in how workloads are deployed in the future, and what architectural choices will be made around modularity, operating environments, software, and cloud services. As indicated by this quarter’s results, one large server customer appears to be betting on a major transition to cloud services, as it alone accounted for approximately a quarter of a million servers deployed in the first quarter.”
Read the report at:
http://www.idc.com/getdoc.jsp?containerId=prUS42707717
