India server market grew 4.2 percent quarter-on-quarter in Q4 2016, mainly due to the sales of high-density servers.
In terms of shipments, India server market fell 16.8 percent quarter-on-quarter in Q4 2016 to 30,501 units.
Enterprise initiative towards digital transformation, analytics, cloud, BI and datacenter consolidation are the key trend observed in Indian server market, said IDC.
ERP upgradation in manufacturing and tech refreshes in banking were the major contributors for server market demand during Q4 2016.
The non x86 server market fell 31 percent quarter-on-quarter in terms of unit shipments and 34.7 percent in terms of revenue in Q4 2016. Banking, manufacturing and telecommunication verticals were the major contributors to the non-x86 market. IBM dominated the market in terms of revenue with the share of 62 percent.
Growing SMBs, IT investments from enterprises towards datacenter consolidation are boosting the growth of the server market in India. There is an increased acceptance of cloud among the SMBs, resulting in new buyer segments and demand for third party data centers.
“Deals from Government towards digitalization, e-governance, smart city and surveillance projects are in pipeline that would fuel the growth of Indian server market in the coming quarters,” said Harshal Udatewar, server market analyst at IDC India.
HPE maintained its lead position in India x86 market with 35 percent in unit market share.
Dell is the second largest server supplier with a market share of 27 percent.
Lenovo’s server market share dropped from 12 percent to 9 percent year-on year.
Cisco’s server market share increased by 13.6 percent year-on-year. Huawei and Acer accounted for the market share of 3.3 and 2.7 percent respectively.
HPE has 38 percent server revenue market share, followed by Dell at 31 percent market share. Cisco has a server revenue share of 10 percent overtaking Lenovo who accounts for 6 percent.
Server market will see demand from government led digitization initiatives. This apart, there will be SAP HANA opportunities, investments in HPC and DR implementations to pull the server market in the coming quarters.
