(Desember 12, 2017)
Gartner released 2017 Q3 worldwide X86 server market report. The data indicates that the global server market continues to grow this quarter with worldwide x86 server shipments increasing by 5.3% and revenue increasing by 16.7% to 2,814,825 units and $13.2B respectively.
The top 3 vendors in terms of share of the global server market in the quarter were DELL EMC, HP and Inspur. In recent years, Inspur has been the fastest-growing vendor. Among the past 14 quarters, Inspur witnessed the fastest growth worldwide in 8 quarters.
2017Q3 Worldwide Vendor Ranking of x86 Server
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 traditional data center operators 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. In China’s server market, the top three vendors in shipments are Inspur, DELL EMC and Huawei. In the past 15 quarters, Inspur ranked first in 9 quarters.
The Internet-based Global Market
According to Gartner, Internet industry has become the mainstay of the global server market and a major engine for global growth in the market. More and more enterprises are transferring their business systems from traditional self-owned data centers to data centers of service providers, and shifting market capacity from the enterprise market to the Internet industry in large scale.
In the case of multi-node servers, a form of product primarily purchased by Internet operators, multi-node server shipments in the quarter grew by 34.95% YoY, accounting for 26.9% of the global market, second only to the mainstream rack server. Internet procurement has changed the form of server products. Internet operators are purchasing more and more products of rack scale servers and prefer integrative e-delivery models.
China is the world’s second-largest data center equipment market, with the highest growth rate in the global server and storage market. According to incomplete statistics, purchases of Internet operators such as BAT have accounted for about one-third of China’s total shipments.
At the same time, Gartner believes that the public cloud has ample room for growth, and the transfer of enterprise information systems to public cloud will continue for a long time.
Those who win the operators will win the market.
The “Breaking” and “Establishment” of the Server Market
Of the top ten Internet technology companies with the highest market value, five have chosen Inspur as their strategic supplier. Inspur has taken largest share in the purchase of four of them. Inspur has been in the Internet field for more than 20 years and has substantial experience, leading it to create JDM, a business model different from OEM and ODM.
The JDM mode is based on the integration of Inspur and the customer industry chain, to provide customized services from development, production and supply to operation and maintenance, to meet the needs of the customer’s specific businesses. JDM mode was first recognized internationally during the Global Technology Conference (GTC) US 2017. JDM mode has been repeatedly verified, run, optimized and upgraded within Inspur for 7 years. JDM minimizes the distance between server vendors and Internet customers, upgrading the supply and demand relationship to a fully integrated mode of collaborative innovation, customized business and win-win business. At the same time, the JDM model is based on a more efficient and flexible business chain. The smart server manufacturing line for internet users has been put into production and the production efficiency is increased by 30%, which shortens the delivery cycle of high-volume orders from 15 days to 5-7 days and increases the daily server delivery capacity to 10,000 units. From R&D to supply, the shortest cycle of a new product will be shortened to 3 months.
At present, through JDM innovation mode, Inspur has provided Internet customers with a series of innovative products, including SR-AI Rack, AGX-2, SAS Switch node for storage resource pool solution, iceberg cold storage, GX4 and all-in-one ABC machines. Inspur has established strategic cooperation with Baidu, Tencent and NetEase to transfer their joint innovation products to conventional businesses transforming towards Internet Plus.
Continuous Technological Innovation to Promote Reform of Data Center
Internet operators are pioneering data center innovation. The Internet-based global server market is driving traditional data centers to transform toward the next generation of data centers. For the large-scale application of data centers in the future, internet operators will be required to think out of the box, provide computing platforms with higher calculation performance, higher efficiency and lower power consumption through continuous technological innovation, to adapt to the development of cloud data center and to re-define a new generation of cloud computing platforms.
While providing customized products for Internet operators, Inspur standardized and serialized these products, forming a complete solution for next-gen data centers, and actively joined the international authoritative open computing standard organization. As a major member of the world’s top three open computing standard organizations, ODCC, OCP and OPEN19, Inspur have contributed a variety of innovative results and IP: in ODCC, multiple design ideas of Inspur SR whole cabinet server were adopted by Scorpio standard; in OPEN19; Inspur was the first to release servers compliant with OPEN19 standard globally; in OCP, Inspur released OR series of whole cabinet servers compliant to OCP international standard, and launched the first server based on Intel Sky Lake platform in OCP community.
At present, the market share of SR series was over 60%. Inspur also developed an integrated architecture plan for traditional enterprise data centers, including whole cabinet servers, InCloudRack, and the I9000 blade system, to help different types of traditional data centers upgrade to the next generation.
Smart Computing Drives Globalization
Human society is transforming from an information society to intelligent society. Continuous innovation in emerging technologies is the key to building core competitiveness in the future era of intelligence. In 2017, Inspur continued to deepen its “Computing Plus” strategy, focusing on intelligent computing and taking cloud computing as the basic platform, big data as cognitive method and deep learning as optimizer, in an approach dubbed CBD (Cloud Computing, Big Data and Deep Learning). Inspur aims to build a computing ecosystem centered on intelligent calculation to strengthen the global leadership in the field of computing, so as to build an intelligent society as soon as possible.
In 2017, driven by its smart computing strategy, Inspur released a series of AI platform products, including AGX-2, with the highest performance density ratio and SR-AI whole cabinet program developed for Baidu. As a vendor with the highest share in the field of AI, Inspur supplies over 90% of the AI servers used by Baidu, Alibaba and Tencent. Inspur also provides AIstation, coffee-MPI and other AI platform software, and has established the basis of an end-to-end AI technology system.
This smart computing strategy lays a solid foundation for Inspur’s business to go global. In the North American market, Inspur saw a 336% YoY growth in shipments in the first half of 2017. In the European market, Inspur announced plans to establish strategic cooperation with NEC (Germany), and won an order from one of the world’s largest automotive factories. With the smart computing strategy developing continuously in global business, Inspur will further secure its position among the top three vendors in global server market.