Inspur Grows Against Downward Trend in 2020 Q1 Global X86 Server Market Report
20 June 2020
The global server market underwent an overall decline in the first quarter of 2020, while Inspur saw an 11% year-on-year increase in revenue and ranked Top 3 both in shipments and revenue of 2020 Q1 global server market.
San Jose, California, June 19 – Recently, IDC released the X86 Worldwide Quarterly Server Tracker in 1Q20. According to the report, global x86 server manufacturers registered a 9.1% year-on-year decrease in revenue to USD 16.84 billion, and a 2.3%% year-on-year decrease in shipments to 2.6 million units.
According to Sebastian Lagana, an IDC global analyst, the demand of cloud service providers and hyperscalers has stayed strong this quarter, but the demand of traditional enterprise customers has slowed. Global supply chain operations have been disrupted by the coronavirus pandemic, causing the delay of many manufacturer orders and to some extent the decline of the global market for x86 servers.
The ranking of global manufacturers has remained relatively stable. With an 11% year-on-year increase in revenue, Inspur ranks in the top three. With ongoing adjustment in the global server market structure, the new generation of high-load applications such as cloud computing, AI and big data are growing rapidly while traditional demand continues to shrink, and this trend has contributed to Inspur’s growth. In recent years, with the implementation of a smart computing strategy, Inspur shifted its business directives to serve emerging technologies such as public clouds, private clouds, big data and AI, fields which Inspur has led in the last few quarters.
Amid the pandemic, global shipments of x86 servers dropped 2.3% year-on-year to 2.56million units in Q120. Inspur serves the world’s top Internet companies including Baidu, Alibaba and Tencent, and much demand comes from the continuous expansion in the hyperscale data center business. Furthermore, the rapid resumption of Inspur’s agile supply chain system and smart factories ensures the timely delivery of orders. At present, Inspur is serving 120 countries and regions with eight global R&D centers, six global production centers, and two global service centers.
The pandemic will have a profound impact on the ICT market. In the short term, it will impact user demand and exert downward pressure on the market. In the long run, it will further accelerate the shift of social economy to an online and intelligent future, and deepen the integration of ICT technology into human society. ICT facilities such as data centers are becoming essential infrastructures of society, and the growth momentum driven by innovations in applications such as AI and 5G will persist. Regardless of global trends, Inspur continues to be competitive in the market thanks to its strategic presence in intelligent computing.