New Delhi: The overall server market in India has witnessed a 1% drop on yearly revenue terms to reach $350.2 million in 2Q19 versus $353.9 million in 2Q18, as per IDC ‘s latest Asia/Pacific Quarterly Server Tracker (excluding Japan), 2Q19.
The x86 server market accounts for 89.9% of the overall server market in revenue terms. The x86 server market contribution primarily came from professional services, telecommunication, and retail verticals.
The market segment witnessed large deals from IT and ITeS customers, nationalized banks, telecom service providers, and e-retail in India during 2Q19.
The overall x86 server market declined Y-o-Y by 4.9% in revenue terms to be valued at $314.8 million in 2Q19 from $330.9 million in 2Q18.
Despite the decline, verticals such as banking and telecommunications registered Y-o-Y growth of 66.6% and 20.9% respectively, whereas retail registered the highest 936.2% Y-o-Y growth in the x86 market, during 2Q19.
The non-x86 server market increased 54.2% Y-o-Y to reach $35.5 million in revenue, in 2Q19. IBM tops the market with a 75.9%, revenue share, followed by Oracle with a 20.2% share and Hewlett Packard Enterprise (HPE) with 3.9% during 2Q19. Banking remained top vertical with 68.8% revenue share followed by manufacturing and professional services with 18.7% and 8.0% respectively, during 2Q19.
In 2Q19, HPE regained its position as the leading player in the India x86 server market with $108.4 million revenue and 34.4% revenue share. HPE grew 15.5% yearly with major wins coming in from telecommunication vertical.
Dell Technologies was the second leading player with a 22.8% revenue share at $71.7 million. Dell Technologies failed to register big wins in this quarter contributing to 13.8% yearly decline in their performance.
Cisco was ranked third with a 6.6% revenue share followed by Lenovo which came in at the fourth position with a 5.6 % revenue share.
“Indian enterprises are transitioning from on-premise servers and virtual servers to cloud workloads. We have noticed spend on compute platforms shifting from traditional IT towards private cloud and public cloud,” said Harshal Udatewar, Market Analyst – Server, IDC India.
IDC India Forecast
Indian economy is at its slowest pace following a sharp dip in demand across sectors such as agriculture, manufacturing, utilities, and construction, but government spending looks positive towards bringing market growth back on track.
From an enterprise standpoint, increased spending is expected to be coming from the telecommunication vertical and local data center providers.
Investments from telecommunication service providers would be driven by projects related to OSS, BSS, IMS stack for value-added services, VoLTE, VRAN, 5G testbed programs towards 5G development, while local cloud service providers would invest in expanding their infra capacity in the coming quarters.
IDC expects banking tech refreshes towards the end of 2019. At present, IDC India x86 server market is expected to witness a 12.9% quarterly decline during Q3 2019.