Worldwide server revenue declined 5.8 percent year-over-year and shipments declined 2.6 percent in the third quarter of 2016 compared to last year, a new report said on Wednesday.
According to market research firm Gartner, "x86 servers declined 2.3 percent in shipments and 1.6 percent in revenue in the third quarter of 2016."
"Server providers will need to reinvigorate and improve their value propositions to help end users justify server hardware replacements and growth if they hope to drive the market back into a positive state," said Jeffrey Hewitt, Research Vice President, Gartner.
Despite a decline of 11.8 percent, Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market, based on revenue, with 25.5 percent market share.
Dell declined 7.9 percent but maintained the second spot with 17.5 per cent market share.
Lenovo secured the third spot with 7.8 percent market share. Cisco stood fourth and IBM dropped to the fifth position and experienced the largest decline among the top five vendors.
HPE secured the top position in server shipments in the third quarter of 2016, with 18.3 per cent of the market.
Despite a decline of 9.8 percent, Dell secured the second spot with 16.8 per cent market share.
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