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EMEA server market reported a year-on-year (YoY) increase in vendor revenues of 17.4% to $4.2 billion and a YoY increase of 0.1% in units shipped to 596,000, according to IDC. Looking at the EMEA market in euros, reported revenues in 4Q17 increased by 7.5% YoY to €3.6 billion.
Top 5 EMEA Vendor Revenues ($M)
Vendor | 4Q16 Server Revenue | 4Q16 Market Share | 4Q17 Server Revenue | 4Q17 Market Share | 4Q16/4Q17 Revenue Growth |
HPE | 1,158.4 | 32.5% | 1,171.6 | 28.0% | 1.1% |
Dell EMC | 608.1 | 17.1% | 873.1 | 20.9% | 43.6% |
IBM | 400.06 | 11.2% | 650.7 | 15.6% | 62.6% |
ODM Direct | 279.4 | 7.8% | 361.9 | 8.7% | 29.6% |
Lenovo | 243.0 | 6.8% | 309.5 | 7.4% | 27.4% |
Others | 873.1 | 24.5% | 814.8 | 19.5% | -6.7% |
Total | 3,562.0 | 100.0% | 4,181.6 | 100.0% | 17.4% |
When viewing the EMEA market by product, the standout contributor to the quarter's growth was custom multinode units, which grew 92.1% YoY in terms of units and 219.3% YoY in terms of revenues. Dell performed strongly in this product segment, with both shipments and average selling prices increasing due to demand for high-specification custom units. Large systems were a second noticeable outperformer, with units growing by 67.5% YoY and revenues by 67.4% YoY. Custom rack-optimized shipments were not far behind, with 44.0% growth YoY.
Segmenting at a Western European level, Ireland maintained a strong performance with 53.3% revenue growth. This is largely the result of continued hyperscale datacenter investments made into the country. France had a very good quarter with a 39.0% YoY increase in server revenue, in part a result of continued investments in high-performance computing (HPC) deals. With $787.3 million in revenue, Germany maintained its position as the region's largest market, although with more tepid growth of 15.9% for the quarter.
Central and Eastern Europe, the Middle East, and Africa (CEMA) server revenue recorded a third consecutive quarter of growth and the last quarter of the year increased by 23.2% to $899.99 million. Deferred demand from previous quarters and the fulfilment of several larger projects before yearend were the main contributors. The Central and Eastern Europe (CEE) subregion grew by 26.8% year over year with revenue of $445.73 million, driven by very strong server sales in Russia helped by investments from service providers and government. Czech Republic and Poland also recorded a positive quarter, benefitting from the good economic situation in the region.
The Middle East and Africa (MEA) subregion remained on the upward path as well and recorded year-over-year growth of 19.8% to $454.26 million in 4Q17. Non-x86 servers outperformed due to the IBM Z mainframe refresh, although x86 also saw double-digit growth thanks to a continuing preference toward richer configurations.