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The Indian server market showed positive result in Q3 2014 and grew by 10% in terms of unit shipments as compared to Q3 2013. According to IDC, APeJ server tracker, the non x86 server market however saw a decline of 58% in terms of revenue in Q3 2014 as compared to Q3 2013 due to large refreshes in verticals like Banking and Telecom being on hold due to various factors.
This market is expected to revive in the coming quarters as these verticals battle the need for more compute due to transitioning needs of their business teams.
According to Janmaijai Dhyani, Server Market Analyst: “Large deals in Professional Services vertical that were on hold previously due to elections, are opening up now as there is a stable Government at the centre. Continued investments by Communications & Media vertical in 4G rollouts is another reason that is driving the server Market in Q3 2014. It is noteworthy that the Retail vertical has seen increased investments as there is lot of funding inflow here.”
According to Gaurav Sharma, Research Manager – Enterprise (India) : “As organizations plan for future growth owing to positive sentiments and favourable government policies, compute is and will remain the key factor to achieve their goals. 4G rollouts, Banking infrastructure up gradation to support more transactions as e-commerce in India takes over, modernization of some of the government departments, long pending defence projects, ever growing services vertical and 3rd platform adoption in every walk of our life would push demand in the coming quarters as well.”
In India x86 server market, HP continued to lead in Q3 2014 with 33% share in terms of units, followed by Dell with a share of 29%. HP saw a decline of 12% while Dell grew by 17% respectively in terms of units (Q3 2014 as compared to Q2 2014). Dell was at the top spot in terms of revenue with a market share of 38% while HP was at 31%. The growth in Dell market share was largely due to investments by Retail vertical.
Server market in India is expected to grow in the coming quarters owing to Banking, Telecom and IT/ITeS refreshes which are pending for some time now. SMB segment is also shaping up well to provide the incremental growth revenue. New announcements and projects from Government would also be instrumental in driving some of these growth numbers for the coming quarters.
