Combined revenues from server-computing products sold to enterprise customers through the distribution channel in Western Europe (WE) increased by +12.4% year-on-year in February 2018, according to the latest data published by CONTEXT, the IT market intelligence company.The product segments grouped to form this meta-category are preconfigured Server Systems, RAM Memory, Processors (Core Processing Units - CPUs), Hard Disk Drives (HDDs) and Solid State Disks (SSDs). The growth was driven by a number of trends, among them an ongoing increase in sales of server RAM and SSD.
A year-on-year comparison highlights detail. In February 2017, SSDs were the only products that saw revenue growth. In February 2018, the adoption of SSDs slowed, growth fell and the strongest growth was in the RAM category. This was driven by a move towards higher-capacity dual in-line memory modules (DIMMs). For example, revenues for DIMM sizes 16GB and below declined, but grew for sizes 32GB and above, while the number of units overall declined. Furthermore, ASPs across the DIMM sizes increased year-on-year, driven by ongoing supply issues within the channel.
“Server systems, which saw a double digit decline in 2017, showed signs of recovery and dropped by only -4.6% year-on-year”, said Mathias Knoefel, Senior Manager, Corporate Benchmarking and Enterprise Analyst at CONTEXT. “For the first time in over a year, there was growth in the category, mainly as a result of the release of AMD EPYC processors into the distribution channel. Revenues from HDDs continued to decline as they continue to be replaced by SSDs.”
The revenue share within the meta-category shows clearly how sales of RAM have increased over the course of the year to such an extent that they have overtaken those of configured server systems.