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Asia Pacific sees positive growth as server revenue declines Globally

According to Gartner, Asia Pacific was the only region to show positive growth in both shipments and revenue in the fourth quarter of 2016

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(Representational image) An employee of the Tokyo Stock Exchange (TSE) reacts as he works at the bourse in Tokyo August 9, 2011. The Nikkei stock average closed down 1.7 percent on Tuesday, having trimmed losses on bargain hunting after the index tumbled more than 4 percent in the wake of a plunge on Wall Street and a downgrade of U.S. sovereign debt. REUTERS/Kim Kyung-Hoon (JAPAN - Tags: BUSINESS) VOA
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Mumbai, March 2, 2017:  As server revenue declined globally, Asia Pacific was the only region to show positive growth in both shipments and revenue in the fourth quarter of 2016, market research firm Gartner said on Thursday.

The worldwide server revenue declined 1.9 percent (year over year) in the fourth quarter of 2016 while shipments fell 0.6 percent from the fourth quarter of 2015.

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In 2016, worldwide server shipments grew 0.1 percent but server revenue declined 2.7 percent.

“Hyperscale data centres (like Facebook, Google) grew and, at the same time, drove some significant server replacements. Enterprises grew at a lower rate as they continued to leverage server applications through virtualisation and in some cases, service providers in the cloud,” explained Jeffrey Hewitt, Research Vice President at Gartner.

From a regional perspective, Asia Pacific region exhibited positive growth in both shipments and revenue. All other regions declined, with Latin America experiencing the largest decline in shipments (12.2 percent), while the Middle East and Africa declined 14.7 percent in terms of revenue.

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Hewlett Packard Enterprise (HPE) led the worldwide server market based on revenue in the fourth quarter of 2016.

The company ended the year with $3.4 billion in revenue for a total share of 22.9 percent worldwide. However, revenue was down 11 percent compared with the same quarter in 2015.

Of the top five global vendors, only Dell and Huawei exhibited growth for the quarter, increasing 1.8 percent and 88.4 percent, respectively.

Dell grew 6.5 percent and moved into the top position in worldwide server shipments in the fourth quarter of 2016, with 19.1 percent of the market. (IANS)

 

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The Top Automotive Trends for This Year

At the very least, we can expect both motorists and automotive companies to have confidence in the future on account of robust sales figures

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Electric cars are gaining more and more popularity in India and are sure to see a boom in their sales and production in the coming future. Photo: M. Rittgerott
Top Automotive Trends of this year listed. VOA
  • Sale of vehicles and automotive parts is on an all-time-high
  • Last year 4 million cars were sold alone in India
  • The numbers are indicating towards a potential upswing

Sales of vehicles and automotive parts continue to increase in India. And just last year, the country saw at least four million cars sold. For a country touted to be one of the largest automotive industries in the Asia-Pacific region, the numbers only show a potential upward swing.

The increase in cess for large cars and sports utility vehicles jumped from 15 per cent to 25 per cent.

India saw the sale of 4 million vehicles last year.At the very least, we can expect both motorists and automotive companies to have confidence in the future on account of robust sales figures. Industry projections also provide reasons to feel elated. For one, the industry is set to grow at a pace of 10 to 15 percent. Given the right conditions and institutional support, it is set to reach a value of $16.5 billion by 2021.

Despite these positive figures, however, it is important to recognize the factors that will either bring new innovations to the table or worsen current challenges.

Here are some of the most important trends to watch out for this year.

Low-cost labor

India is indeed a haven for international car companies seeking to establish assembly lines at low costs. The availability of skilled labor and, with that, low wages will continue to play a vital role in improving annual production rates. China is the powerhouse for now, but local car manufacturers in India are maximizing the current labor climate in a bid to outrank its oriental neighbor.

 

Research and Development of features like fuel efficiency will be one of the main trends.

 

Focus on research and development

Safety and environmental concerns continue to be a priority among international car manufacturers. Consumers are still reeling from the serious recalls Toyota had to implement in response to factory defects. The experience created an atmosphere of caution, where buyers have become more focused on ensuring their own safety on the road. Design and manufacturing have thus skewed more towards ensuring better airbag systems, quality assessment procedures and environmental compliance.

Ventures with other companies

Innovations and technological shifts are a given, but it remains crucial for manufacturers to forge stronger relationships with OEM and tier partners such as machining services, AC parts suppliers, and windshield installations. However, due to incessant innovations, suppliers will have to update existing technologies or undergo acquisitions by larger OEMs where the sharing of vital resources of knowledge is very much possible.

 

Also Read: Electric Cars: The Newest Trend In India

Reliance on digital marketing

As with previous years, manufacturers and dealerships will continue to adapt to current digital trends. In terms of distribution, using online platforms can actually help in saving costs by selling directly to buyers, hence bypassing retailers. What’s more, using their online brand presence, car manufacturers can do better market research and outreach activities, allowing them to shorten the time it takes before buyers can make their decisions.

 

Digital marketing is another popular profession among graduates. Wikimedia Commons
Digital marketing will potentially increase the sales of cars. Wikimedia Commons

 

Focus on reforms

In a 2017 blog article by Priyam Saraf for The World Bank, policy reforms in the country are crucial for enhancing India’s competitiveness. Investments in research and development should also go hand in hand with reduction of tariffs as a way towards lessening the pressures on the automotive industry. More importantly, measures for improving compliance to global standards can further strengthen the industry’s performance in the face of rising competition that lies close to home.