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Worldwide server revenue continues to grow with an increase of 33.4 percent in Q1 2018.
According to Gartner, the server market is being driven by renewed interest in the hyperscale, data centers, and investment by everyone from enterprise players to SMBs seeking to update their infrastructure, abandon legacy systems and sign up to new technological solutions.
On Monday, the research firm said that server revenue grew by 33.4 percent worldwide in the first quarter. Shipments grew by 17.3 percent year-over-year.
"Enterprises and midsize businesses are in the process of investing in their on-premises and colocation infrastructure to support server replacements and growth requirements even as they continue to invest in public cloud solutions," said Jeffrey Hewitt, research vice president at Gartner. "Additionally, when it came to server average selling prices (ASP) increases for the quarter, one driver was the fact that DRAM prices increased due to constrained supplies."
The demand for DRAM has outstripped supply for over a year. The increasing demand for data storage has been prompted by the booming smartphone and tablet industry, the Internet of Things (IoT), and research projects ranging from artificial intelligence (AI) to autonomous driving.
The global chip industry has pushed up prices for DRAM across the board as a result. According to market research firm DRAMeXchange, global DRAM bit supply[1] will grow by 19.6 percent over the course of 2018, while demand is forecast to surge by 22 percent.
North America and the Asia Pacific region enjoyed the most growth in the server industry, with estimates reaching 34 percent and 47.8 percent. When it comes to shipments, the regions grew by 24.3 percent and 21.9 percent, respectively.
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