The India server market has achieved 14.2 percent revenue growth in Q1 2017 q-on-q to $215.6 million in Q1 2017 – driven by public cloud uptake and digital transformation across banking and government verticals, said IDC.
The India x86 server market revenue rose y-o-y 3.9 percent to $195.6 million. The x86 server market accounted for 90.7 percent of the overall server revenue – mainly driven by spending of public cloud service providers for their data centers.
Public cloud providers are in the process of expanding their presence in India to tap opportunities arising from enterprise’s migration to cloud and role of emerging technologies such as Artificial Intelligence, IoT and analytics.
“Professional services, telecom and banking remained the top three verticals, accounting for about 70 percent of the overall market. The market is likely to be driven by digital initiatives, SAP HANA implementations and cloud workloads in the coming quarters,” Rishu Sharma, associate manager, Enterprise Infrastructure, IDC India.
Density optimized servers account for q-o-q growth of 413.6 percent because CIOs prefer such servers for cloud workloads.
The non x86 server market fell 22.3 percent y-o-y to $20 million in Q1 2017.
IBM led the non x86 server market with 50 percent market share.
HPE remained the only vendor who grew its share to 17.8 percent.
In non x86 server market banking industry on its own contribute for 57.3 percent of the revenue, followed by manufacturing and professional services verticals.
In India x86 market, HPE increased its market share from 37.8 percent in Q4 2016 to 40.3 percent in Q1 2017, followed by Dell with a market share of 20.5 percent. Cisco increased its market share to 8.9 percent in Q1 2017, mainly driven by its blade revenue.
Though the market increased in terms of revenue most of the major vendors failed to maintain their market share, while ODMs have been successful in growing their market share from 0.3 percent in Q1 2016 to 14.5 percent in Q1 2017.
ODMs have disrupted the India server market during Q1 2017 by strategically positioning themselves in public cloud and third party data center space.
“Digital transformation initiatives from Government towards smart cities, skill India, e-records, education, healthcare is likely to drive the server market,” said Harshal Udatewar, server market analyst, IDC India.
Increased banking focus towards high compute to handle transactions, analytics, and CRM applications are vital factors leading towards the server market growth in the coming quarters.
Professional services including IT, ITeS, third party datacentre and public cloud service providers would continue to fuel the server market growth in India.
