The overall server market revenue in India fell 1 percent YoY to reach $350.2 million in 2Q19 versus $353.9 million in 2Q18, according to IDC.
The x86 server contributes to 89.9 percent of the overall server market in terms of revenue, mainly driven by the rapid adoption among professional services, telecommunication, and retail verticals.
The market segment witnessed large deals from IT and ITeS customers, nationalized banks, telecom service providers, and e-retail in India during 2Q19.
However, the overall x86 server market declined YoY by 4.9 percent in terms of revenue to be valued at $314.8 million in 2Q19 from $330.9 million in 2Q18.
Despite the decline, verticals such as banking and telecommunications registered YoY growth of 66.6 percent and 20.9 percent respectively, whereas retail registered the highest YoY growth of 936.2 percent in the x86 market, during 2Q19.
The non-x86 server market increased YoY by 54.2 percent to reach $35.5 million in revenue, in 2Q19.
IBM tops the market with a revenue share of 75.9 percent, followed by Oracle with a share of 20.2 percent and Hewlett Packard Enterprise with 3.9 percent during 2Q19.
Banking remained top vertical with 68.8 percent revenue share followed by manufacturing and professional services with 18.7 percent, and 8.0 percent respectively, during 2Q19.
In 2Q19, Hewlett Packard Enterprise (HPE) regained its position as the leading player in the India x86 server market with revenue of $108.4 million and revenue share of 34.4 percent. HPE grew YoY by 15.5 percent with major wins coming in from telecommunication vertical.
Dell Technologies was the second leading player with a revenue share of 22.8 percent at a revenue of $71.7 million. Dell Technologies failed to register big wins in this quarter contributing to 13.8 percent YoY decline in their performance.
Cisco was ranked third with a revenue share of 6.6 percent followed by Lenovo which came in at the fourth position with a revenue share of 5.6 percent.
“Indian enterprises are transitioning from on-premise servers and virtual servers to cloud workloads. We have noticed spend on compute platforms shifting from traditional IT towards private cloud and public cloud,” says Harshal Udatewar, Market Analyst, Server, IDC India.
Indian economy is at its slowest pace following a sharp dip in demand across sectors such as agriculture, manufacturing, utilities, and construction, but government spending looks positive towards bringing market growth back on track, IDC said.
Increased spending is expected to be coming from the telecommunication vertical and local data center providers. Investments from telecommunication service providers would be driven by projects related to OSS, BSS, IMS stack for value-added services, VoLTE, VRAN, 5G testbed programs towards 5G development, while local cloud service providers would invest in expanding their infra capacity in the coming quarters.
IDC expects banking tech refreshes towards the end of 2019. At present, IDC India x86 server market is expected to witness a QoQ decline of 12.9 percent during Q3 2019.
