Compared with the first two quarters, the growth rate of the global X86 server market in Q3 was up from -4.0% and 2.6% to 5.3%, with CSPs' investment on data center infrastructure as a main driving force.
The vendor shares saw some changes in Q3. While Dell EMC and Hewlett-Packard Enterprises (HPE) maintained the top 2 positions, Inspur rose to occupy the 3rd position with both revenue and shipments ranking 3rd. In recent years, Inspur has been the fastest-growing vendor. Among the past 14 quarters, Inspur witnessed the fastest growth worldwide in 8 quarters.
In terms of regional markets, North America and China are the fastest-growing regions, with 7.8% and 9.5% YoY growth respectively. The rapid development of the Internet and cloud data centers has brought thriving market demand for servers in these regions. In China, the growth of the country's server market was not only driven by increased procurement by operators, but also by large shipments to the enterprise market. According to Gartner, the market for Chinese enterprises has increased significantly as more businesses and government transfer their business systems from traditional data centers to cloud data centers.
Internet industries have reached a stage of high customization, making it necessary for companies to reorganize and adjust their existing supply chain based on customer needs, to enable quick responses to customer demand, flexible decisions, and fast and high-quality deliveries. This is a challenge to all conventional server vendors. Inspur has been able to adapt to this challenging environment and maintain its rapid growth by JDM (Joint Design Manufacturing) model innovation and applying it to large-scale cloud data centers in the region, allowing it to ride out unfavorable conditions in the global market, such as price increases in memory, solid state drives and other components, and international exchange rate fluctuations to win customer trust. Inspur supplies servers to 5 out of 10 largest global top-tier internet technology companies.
"Demand from CSP customers determine the direction of the global server market," said Vice President of Inspur Group, Peter Peng. "Inspur focuses on smart computing for large-scale data center applications and provides products to customer that are higher in performance and efficiency through technological innovation. Through use of JDM model innovation and by adapting to internet application scenarios, Inspur works closely with our customers to integrate a full cycle cooperative business process of joint research and development, supply chain management, production, payment and delivery to achieve long-term win-win relationship with our customers."
In the next 10 years, smart computing focused on cloud, big data and AI will be the focus of future IT investments, accounting for more than 70% of the computing industry. Emerging applications, such as big data and AI, will stimulate CSPs to continue to invest in the build out of cloud data centers and related technology.
About Inspur
Inspur is the leader in intelligent computing and ranked top three in worldwide server manufacturing. We provide cutting-edge hardware design and deliver extensive AI product solutions. Inspur provides customers with purpose-built servers and AI solutions that are Tier 1 in quality and energy efficiency. Inspur's products are optimized for applications and workloads built for data center environments. To learn more, http://www.inspursystems.com.
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