Dell was the No. 1 server vendor by revenue share for the first quarter of 2019, according to a Dell’Oro Group market report that tracks server spending. After Dell came Hewlett Packard Enterprise (HPE), Inspur, Lenovo, Cisco, Huawei, and IBM.

The report found that the worldwide server market grew at the slowest pace in eight quarters, increasing just 1% year over year. Dell’Oro attributes this slow growth to spending deceleration by cloud service providers and enterprises. This echoes the message from top server vendors’ executives, who, on recent Q1 earnings calls with investors, have blamed slowing cloud and enterprise sales for weaker-than-expected server sales.

In late May, Dell Technologies reported a 9% decrease in server and networking revenue. And HPE’s Hybrid IT business, which includes server revenue, fell 4% year over year.

“After a record 29% revenue growth last year, the server market is off to a slow start with a modest 1% growth,” said Baron Fung, director at Dell’Oro Group, in a statement. “In this quarter, server unit shipments declined for the first time in five quarters, and growth in server average selling prices started to plateau as the refresh cycle winds down.”

While cloud service providers’ slowing capex resulted in fewer server purchases this quarter, Fung said he expects the cloud providers’ server spending to resume and “expand capacity by late 2019,” as enterprises continue to move their workloads to public clouds.

The report says data center-related capex of the top four cloud service providers during the first quarter grew in the mid-single digits year over year. This follows another market report — this one from Synergy Research Group — that also showed that hyperscale operator capex dropped 2% in the first quarter of 2019, totaling just over $26 billion, compared with the record-setting levels seen throughout 2018.

“However, though Q1 capex was down a little from 2018, to put it into context it was still up 56% from Q1 of 2017 and up 81% from 2016; and nine of the 20 hyperscale operators did grow their Q1 capex by double-digit growth rates year on year,” said John Dinsdale, a chief analyst at Synergy Research Group, in a statement. “We do expect to see overall capex levels bounce back over the remainder of 2019.”

The Dell’Oro report also found white box servers, which are primarily deployed by the hyperscale cloud providers, continued to gain share from the branded OEM vendors despite of a year-over-year decline.