Server market in India rose by 21.6 per cent year-on-year in Q1 2016, with 40,495 units shipped in Q1 2016 as against 33,292 units in Q1 2015. In terms of revenue, there was a 27.8 per cent year on year growth registered in Q1 2016, reported International Data Corporation (IDC).
Continued investments from telecom service providers towards 4G deployments, piece-meal investments from local hosting providers and periodic banking refreshes primarily contributed to the national compute demand in Q1 2016. The onset of digitization drives across multiple verticals and cities further drove server demand this quarter. Multiple ongoing smart city initiatives and surveillance projects further propelled compute demand nationwide.
The non x86 server market grew by 15.3 per cent year on year in terms of unit shipments and 42.4 per cent in terms of revenue in Q1 2016. Banking and Communications & Media verticals were the major contributors to this growth, owing to several bank refreshes and continued investments from telecom providers.
“Last few quarters have witnessed predominant compute demand from telecom providers for 4G deployments, e-commerce investments and local datacentre expansions. With the launch of AWS data centres in India, the cloud services space in India is expected to get more competitive, price cuts more dramatic and compute demand more imperative,” said Ruchika Kakkar, Server Market Analyst, IDC India,
“Digital initiatives, consolidation projects, refresh and upgrades and growing need for compute due to 3rd platform deployments are all in line to drive demand in the coming quarters,” said Gaurav Sharma, Research Manager, Research Manager- Enterprise & IPDS, IDC India,
Major Vendors
In India x86 market, HP maintained its leading position in Q1 2016 with 40 per cent market share in terms of unit shipment, followed by Dell with a market share of 25 per cent. Lenovo’s market share dropped from 18 per cent to 12 per cent year-on year. White box providers lost marginal market share of 1 per cent on a comparative basis, down from 12 per cent in Q1 2015 to 11 per cent in Q1 2016; however, they witnessed 16.4 per cent year-on-year growth in Q1 2016, in terms of absolute unit shipment. Cisco’s market share dropped by 1 per cent year-on year, while Acer retained its market share at 3 per cent.
On the revenue front, HP led with 46 per cent market share, followed by Dell at 27 per cent market share. Lenovo’s market share stood at 8 per cent in Q1 2016, closely followed by Cisco at 7 per cent.
IDC India Forecast
Investments from global cloud service providers and a few e-commerce players is expected to drive notable compute demand in the next two quarters. On-going banking refreshes and digitization across various verticals are expected to augment server demand further. Government backed surveillance and ‘Digital India’ projects across multiple states remain in the pipeline, with further investments expected in the near future.