IDC released first quarter statistics on India server market.
The research firm said the server market increased 21.6 percent annually in the first trimester of 2016. The nation has shipped 40,495 units servers, an increase from 33,292 units in Q1 2015.
Revenue from server sales increased 27.8 percent year on year in Q1 .
IDC said growth in the first quarter was driven by continued investments from telecom service providers towards 4G deployments, piece-meal investments from local hosting providers and periodic banking refreshes.
Additionally, the onset of digitization drives across multiple verticals and cities further drove server demand this quarter.
Multiple ongoing smart cities initiatives and surveillance projects further propelled compute demand nationwide, the research firm added.
IDC data further showed that the non x86 server market grew by 15.3 percent year on year in terms of unit shipments and 42.4 percent in terms of revenue.
According to Ruchika Kakkar, Server Market Analyst, IDC India, “Last few quarters have witnessed predominant compute demand from telecom providers for 4G deployments, e-commerce investments and local datacentre expansions. With the launch of AWS data centres in India, the cloud services space in India is expected to get more competitive, price cuts more dramatic and compute demand more imperative.”