Indian Server Market Drops 8.1 Per cent in Q3: IDC India

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During the third quarter, the x86 server market in terms of revenue fell by 6.1 per cent year-on-year to reach US$ 253.4 million

The overall Indian server market has recorded a decline of 8.1 per cent in terms of revenue in third quarter of 2018 as compared to the same quarter last year, according to the latest report by IDC India.

The server market in the country reached US$ 276.6 million in the July-September quarter as against US$ 300.9 million in the same period of 2017, the report said.

Commenting on the report, Ranganath Sadasiva, Director, Enterprise Research, IDC India, said, “End users in India are slowly adopting hybrid IT for their datacentre strategy. Thus, it has become crucial for vendors to market their solutions by addressing end-users challenges such as compatibility, migration, application performance and IT support serviceability features.”

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The x86 server market in India has declined in the third quarter this year which made up for 91.6 per cent of the total server market (in terms of revenue). The drop is primarily due to lack of multi-million dollar deals from IT and ITeS players.

During the given quarter, the x86 server market in terms of revenue fell by 6.1 per cent year-on-year to reach US$ 253.4 million from US$ 269.9 million in the same quarter last year.

Major segments

Segment-wise, professional services sector made up for the highest contribution to the total x86 server market revenue, with 57.5 per cent, followed by telecom with 10.4 per cent contribution. On the other hand, manufacturing and banking segments were slow due to the limited new deals and small upgrades.

In x86 server market, Hewlett Packard Enterprise (HPE) achieved the leadership position by capturing a revenue share of 25.5 per cent to reach US$ 64.6 million. Dell was the second biggest vendor having a revenue share of 23.6 per cent to reach US$ 59.8 million, followed by Lenovo and Cisco with a share of 8.4 per cent and 8.2 per cent, respectively. In addition, original design manufacturers (ODMs) direct market share dropped by 33.8 per cent.

Non x86 server market

In July-September period, the non x86 server market in India declined by 24.9 percentage points and generated $23.2 million in revenues. IBM becomes the leader in the market with a 63.8 per cent revenue share, followed by Oracle having a share of 22.5 per cent and Hewlett Packard Enterprise (HPE) with 13.8 per cent share.

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