By using this site, you agree to the IDC Privacy Policy

30 Mar 2017

India x86 server market declined by 16.8 percent in Q4 2016; but Government remains growth enabler: IDC India

New Delhi, According to International Data Corporation  (IDC), server market in India declined by 16.8 percent quarter-on-quarter in Q4 2016, with 30,501 units shipped in Q4 2016 as against 36,668 units in Q3 2016. In terms of revenue, there was a 4.2 percent quarter-on-quarter growth registered in Q4 2016, majorly due to the sales of high-density servers.

Click to Tweet: India x86 Server m arket declined by 16.8 percent quarter-on-quarter in Q 4 2016: IDC India# IDCIn

Enterprise initiative towards digital transformation, analytics, cloud, BI and datacenter consolidation are the key trend observed in Indian server market. Pricing and tailormade solutions has become crucial for the vendors as they are frequently challenged by ODM’s and white box players. Amidst of all these industry concerns, 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 declined by 31.0 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, at end Q4 2016.

According to Harshal Udatewar , Server Market Analyst, IDC India, “The market corrected itself, owing to the absence of large multi-million dollar deals. Growing SMB’s, IT investments from enterprises towards datacenter consolidation are boosting the growth of the server market. 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”.

According to Rishu Sharma , Associate Manager, Enterprise Infrastructure-,” The Indian server market witnessed a difficult quarter, as organizations continue to consolidate their prevailing workloads on fewer servers. We are also seeing increased acceptance of cloud among the SMBs, resulting in new buyer segments and demand for third party data centers”.

Source: IDC APeJ Server Tracker Q4 2016

Major Vendors

In India x86 market, HPE maintained its leading position in Q4 2016 with 35 percent market share in terms of unit shipment, followed by Dell with a market share of 27 percent. Lenovo’s market share dropped from 12 percent to 9 percent year-on year. Cisco’s market share increased by 13.6 percent year-on-year, while Huawei and Acer accounted for the market share of 3.3 and 2.7 percent respectively, at end Q4 2016.

On the revenue front, HPE led with 38 percent market share, followed by Dell at 31 percent market share. Cisco registered market share of 10 percent overtaking Lenovo who accounts for 6 percent of market share by revenues during Q4 2016.

IDC India Forecast

The government led digitization initiatives are expected to pick pace and would continue in the coming quarters. SAP HANA opportunities, investments in HPC and DR implementations would pull the market further the coming quarters.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and Events Company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

All product and company names may be trademarks or registered trademarks of their respective holders.

For more information on Server Market, please contact:

Harshal Udatewar, Server Market Analyst, hudatewar@idc.com

Rishu Sharma, Associate Manager, Enterprise Infrastructure, risharma@idc.com

For press inquiries, please contact:

Shreya Jain

IDC India

shjain@idc.com

+91 9611896886

Coverage
Contact
For more information, contact:

Shreya Jain
shjain@idc.com
9611896886