Lenovo has rebooted its server group management and its sales force but so far in 2017 the moves don’t appear to be working.
As global server revenues rose in the second quarter, Lenovo sales plunged, says research firm IDC.
The news is also not good for HP or IBM.
However, Dell and Cisco are growing.
Here’s the update, based on second quarter data in which revenues grew 6.3 percent year-over-year to $15.7 billion.
- “HPE/New H3C Group [a new partnership] remained first in the worldwide server market with 21.3% market share in 2Q17, as revenue decreased 8.4% year over year to $3.3 billion. HPE’s share and year-over-year growth rate includes revenues from the H3C joint venture in China that began in May of 2016; thus, the reported HPE/New H3C Group combines server revenue for both companies globally.
- “Dell Inc maintained the second position in the worldwide server market with 17.7% of vendor revenue for the quarter and 7.0% year-over-year growth to $2.8 billion.
- “IBM and Cisco were statistically tied for the third market position. IBM had 6.6% share, with revenue declining 20.8% year over year to $1.0 billion. Cisco had 5.6% share, with revenue increasing 1.7% to $875 million.
- “Lenovo was ranked fifth with 5.3% share and revenue declining 13.9% to $834 million. The ODM Direct group of vendors grew revenue by 48.1% to $3.5 billion.”
IBM focuses on high-end servers, having sold its x86 business to Lenovo three years ago. But it may face trouble ahead.
“Demand for high-end systems experienced a year-over-year revenue decline of 18.9% to $1.3 billion,” IDC says. “IDC expects continued long-term secular declines in high-end system revenue.”