RESEARCH TRIANGLE PARK – Despite management shakeups and new products, the news for Lenovo’s server business groups continues to get worse.

A new report out Monday from research firm Gartner says Lenovo’s server shipments plunged 33.5 percent year-over-year in the third quarter even as revenues across the server industry surged more than 5 percent.

Lenovo no longer ranks in the top five for server revenue, falling into the “others” categories.

Earlier this month, research firm IDC also reported plunging sales for Lenovo, which has brought in new management, reorganized its sales force and continues to freshen its product lineup.

Lenovo’s server group is based in RTP and is built largely around the low-end X86 server business it acquired from IBM.

For the industry overall, however, the news was good – including IBM, which increased sales for the high-end, much pricer servers it kept.

“The third quarter of 2017 produced continued growth on a global level with varying regional results,” said Jeffrey Hewitt, research vice president at Gartner. “A build-out of infrastructure to support cloud and hybrid-cloud implementations was the main driver for growth in the server market for the period.”

Lenovo shipments fell to 151,575 in the third quarter, and its market share tumbled to 5.4 percent from 8.5 percent, according to Gartner.

“Hewlett Packard Enterprise continued to lead in the worldwide server market based on revenue. Despite a decline of 3.2 percent, the company posted $3.1 billion in revenue for a total share of 21 percent for the third quarter of 2017 ,” Gartner reported.

“Dell EMC maintained the No. 2 position with 37.9 percent growth and 20.8 percent market share. Inspur Electronics experienced the highest growth in the quarter with 116.6 percent, driven by ongoing sales into China-based cloud providers, as well as global expansion efforts.”