Indian server market revenue witnessed 14.2 % increase: IDC

Drives public cloud uptakes and digital transformation in India and the emergence of new technologies like Artificial Intelligence, Internet of Things (IoT).

    According to an IDC Asia Pacific study, the 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, owing to the high spending of public cloud service providers.

    Indian server market revenue witnessed  14.2 % increase: IDC

    The server market, according to the study, drives public cloud uptakes and digital transformation in India and the emergence of new technologies like Artificial Intelligence (AI), Internet of Things (IoT) and analytics have resulted in the growth of public cloud providers in India.

    The x86 server market saw a 90.7 percent growth of the overall server revenue in Q1 2017, whereas non x86 server market declined by 22.3 percent year-over-year and reached $20.0 million in Q1 2017.

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

    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.

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