1Q18 EMEA Server Spending up by 35 Percent

1Q18 EMEA Server Spending up by 35 Percent
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IDC found that in the first quarter of 2018, the EMEA server market reported a year-on-year (YoY) increase in vendor revenues of 35.0% to $3.9 billion and a YoY increase of 2.0% in units shipped to 542,000. In euros, 1Q18 EMEA server revenues increased by 17.0% YoY to €3.1 billion. Exchange rate fluctuations impacted the strong dollar revenues recorded over the quarter, due to a higher euro/dollar value compared with 1Q17.

Top 5 EMEA Vendor Revenues ($M)

Vendor

1Q17 Revenue

1Q17 Share

1Q18 Revenue

1Q18 Share

1Q17/1Q18 Growth

HPE

907.0

31.7%

1,242.2

32.1%

37.0%

Dell EMC

564.4

19.7%

886.6

22.9%

57.0%

ODM Direct

373.7

13.0%

378.3

9.8%

1.4%

Lenovo

183.4

6.4%

312.5

8.1%

70.4%

Cisco

198.5

6.9%

278.9

7.2%

40.5%

Others

636.5

22.2%

766.8

19.8%

20.5%

Total

2,864.0

100.0%

3,865.7

100.0%

35.0%

At a product level, standard rack optimized, as the largest revenue generator, grew 45.2% YoY pushed by large deals in the U.K. and the Netherlands. Standard multinode shipments grew at a significant 251.4% YoY rate, driven largely by the U.K., Germany and the Netherlands. Another standout contributor to quarterly growth in EMEA were custom multinode units, which grew 107.3% YoY in terms of revenues.

In comparison to OEM vendors, original design manufacturers (ODMs) growth rates were significantly lower over 1Q18. The 1.4% YoY increase was primarily due to a drop in ODM hyperscale datacenter deals in Ireland, Finland, and Russia. ODM growth is expected to accelerate in late 2018 and 2019 with new cycles of datacenter launches for Apple, AWS, and Google.