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

03 Jul 2017

Indian Server Market Revenue Increases by 14.2% in Q1 2017 due to High Spending of Public Cloud Providers: IDC India

NEW DELHI, July 3rd , 2017 - According to the latest IDC Asia Pacific excluding Japan (APEJ) Quarterly Server Tracker, Q1 2017, the overall server market in India witnessed a quarter-on-quarter (QoQ) increase of 14.2 percent in terms of revenue to reach $215.6 million in Q1 2017 as against $188.8 million in Q4 2016. The x86 server market accounted for 90.7 percent of the overall server revenue during Q1 2017 with growth being majorly driven by spending of public cloud service providers for their data centers.

Click to Tweet: Indian Server Market Revenue Increases by 14.2% in Q1 2017 due to High Spending of Public Cloud Providers: @IDCInd

The public cloud uptake and digital transformation across banking and government verticals are driving the server market in India. The x86 server market in terms of revenue witnessed a year-over-year (YoY) growth of 3.9 percent to reach $195.6 million in Q1 2017 up from $188.2 million during Q1 2016.

The enterprise migration to cloud and role of emerging technologies such as Artificial Intelligence, IoT and analytics are attracting the global public cloud providers to expand their footprints in India. Density optimized servers are mostly preferred for cloud workloads which are gaining traction, accounting for QoQ growth of 413.6 percent in terms of revenue for Q1 2017 over previous quarter.

The non x86 server market declined by 22.3 percent YoY in terms of revenue to reach $20.0 million in Q1 2017. In terms of revenue, IBM led the market, accounting for 50 percent of market share, while HPE remained the only vendor who grew its share to 17.8 percent during Q1 2017. 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.

Rishu Sharma , Associate Manager, Enterprise Infrastructure added “Professional services, telecommunications and banking remained the top three verticals, accounting for about 70% of the overall market. The market is likely to be driven by Digital initiatives, SAP HANA implementations and cloud workloads in the coming quarters”

Major Vendors

In India x86 market, HPE increased its market share from 37.8 percent in Q4 2016 to 40.3 percent in Q1 2017 in terms of revenue, followed by Dell with a market share of 20.5 percent during Q1 2017.Though the market increased Y-o-Y 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 and Cisco increased its market share to 8.9 percent in Q1 2017, mainly driven by its blade revenue.

ODMs have disrupted the India server market during Q1 2017 by strategically positioning themselves in public cloud and third party data center space and are challenging the established vendors with their attractive pricing,” says Harshal Udatewar , Server Market Analyst, IDC India

IDC India Forecast

Digital transformation initiatives from Government towards smart cities, skill India, e-records, education, healthcare is likely to drive the market. Also, increased banking focus towards high compute to handle voluminous transaction, 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.

For more information on the India mobile phone market, please contact Harshal Udatewar, Server Market Analyst, India , hudatewar@idc.com and Rishu Sharma, Associate Research Manager, Server and DC, risharma@idc.com. For press inquiries, please contact Shreya Jain at shjain@idc.com

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 semi-annual, 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.

Coverage
Contact
For more information, contact:

Shreya Jain
shjain@idc.com
9611896886