Investment drives India’s server market growth in Q3 2015: IDC

IDC india server market

The x86 server market in India grew by 13 percent year-on-year in terms of unit shipment in Q3 2015, IDC said. Revenue from the shipments increased 25 percent annually.

Investments from communications service providers, e-commerce companies and hosting service providers were the main growth drivers.

Similarly, non x86 server market grew by 37 percent year-on-year and revenue jumped 31.

IDC said communications and media vertical in particular was the prominent contributor to this growth; primarily owing to new 4G roll-outs and refresh deals, which are expected to continue in the forthcoming quarters.

White box server providers logged 19 percent growth, with high-performance compute (HPC) servers remain a focus area for most of them.

In the third quarter, HP retained its first position in the x86 server vendor list with 39 percent market share in terms of unit shipment, followed by Dell with a market share of 28 percent.

Lenovo’s market share dropped from 16 percent to 12 percent year-on-year. White box providers witnessed 1 percent market share gain, up from 10 percent in Q3 2014 to 11 percent in Q3 2015, in terms of absolute unit shipment.

Cisco maintained a consistent market share of 5 percent year-on-year, and witnessed 18 percent year-on-year growth in terms of absolute unit shipment.

On the revenue front, HP continued to lead with 44 percent market share, followed closely by Dell at 31 percent market share. Lenovo held 9 percent market share, followed by Cisco and white box providers at 7 percent and 3 percent, respectively.

India outlook

IDC forecast server market in India is expected to grow in the coming quarters owing to government campaigns like “Make in India” and the proposed GST bill.

Further investments towards digitization, paperless transactions and mobility are expected to propel server demand across all major verticals including professional services, banking, education and healthcare.

Communications and media, retail and transportation verticals are expected to invest in their IT infrastructure upgrades in the coming quarters.

Arya MM

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