India server market drops 11% to $266 mn in Q4: IDC

The server market revenue in India declined 11.2 percent to $266.1 million in Q4 2020 (Oct-Dec) as compared with $299.6 million in Q4 2019, according to IDC.
India server market Q4 2020
The x86 server revenue contribution grew to 92.9 percent mainly due to demand from the professional services, telecommunications, and manufacturing verticals.

The x86 server market revenue declined 6.3 percent to $247.2 million in Q4 2020 from $264.0 million in Q4 2019. The contribution largely came from the custom-built server category with revenue growth of 28.7 percent.

The General-purpose server revenue declined 13.4 percent due to the weakening demand across different industries. Server spending by industry verticals such as utilities, resource industries, and securities and investment services grew at 331.5 percent, 218.7 percent, and 160.6 percent respectively.

The non-x86 server market revenue declined 47.1 percent to $18.9 million in Q4 2020. IBM dominated the market accounting for 49.4 percent of revenue share with a revenue of $9.3 million. HPE is #2 followed by Oracle with a revenue share of 27.8 percent and 8.3 percent respectively.

Dell Technologies is the top server vendor in the India x86 server market with a revenue share of 29.6 percent and revenue of $73.1 million. Professional services, banking, and discrete manufacturing were top three verticals for Dell Technologies.

HPE is #2 with a revenue share of 19.5 percent and revenue of $48.2 million in the fourth quarter of 2020. Telecommunications, discrete manufacturing, and professional services were main verticals for HPE.

Lenovo was #3 with revenue share of 10.9 percent and revenue of $27 million. Cisco is #4 accounting for a revenue share of 9.1 percent and revenue of $22.6 million.

“For 2021, we expect the server market demand to grow across hyperscalers, local data center players, telecommunication companies, banking and financial institutions, and manufacturing firms. Government pipeline looks promising and can expect spend in H2 2021,” says Harshal Udatewar, market analyst, Server, IDC India.