The drive toward the cloud is lifting all boats. The need for capacity and new servers combined to lift the server market in the third quarter, with more growth to come, especially for the “white box” vendors.
Gartner reported worldwide server revenue grew by a very impressive 16 percent year over year in the third quarter of 2017, while unit shipments grew by 5.1 percent. That gulf between revenue and units means more higher-end, more decked-out servers are being sold than cheap, commodity hardware.
It helps that in recent months, Hewlett Packard Enterprise (HPE), Dell EMC and Lenovo have all released new hardware, which is helping to drive sales as enterprises refresh their on-premises hardware. So all told, the third quarter was marked by new hardware and continued growth of the cloud.