India Server Market revenue declines YoY by 16.2% to reach $298 million in Q1 2019
July 18, 2019 | IDCEstimated reading time: 3 minutes
The overall server market in India witnessed a year-over-year (YoY) decline of 16.2% in terms of revenue to reach $298.0 million in Q1 2019 versus $355.8 million in Q1 2018, according to the latest IDC Asia/Pacific Quarterly Server Tracker (excluding Japan) Q1 2019. The x86 server market accounts for 88.9% of the overall server market in terms of revenue. The contribution to x86 server market mostly came from the professional services vertical followed by manufacturing, banking, Government and telcos.
The deployment of x86 servers was largely seen in the traditional datacenter set up followed by private and public cloud. However, new-age applications, email/collaborative and CRM applications are the ones getting migrated to public cloud while the core applications show strong resistance and continue to run on traditional environment.
The x86 server market in terms of revenue declined YoY by 19.0% to reach $264.9 million in Q1 2019 from $327.3 million in Q1 2018. Professional services, manufacturing, communications and media, banking and education accounted for 82.0% of overall x86 server market revenue. Education vertical saw the highest Y/Y growth of 414.7% owing to a few large deals around high-performance computing (HPC) and National Supercomputing Mission (NSM) projects.
The non x86 server market increased YoY by 15.9% to reach $33.1 million revenue, in Q1 2019. IBM tops the market with a revenue share of 76.5%, followed by Oracle with share of 17.9 and HPE with 5.6% during Q1 2019. Banking remains top vertical with 45.8% revenue share followed by manufacturing and utilities with 22.0%, and 10.3% respectively, during Q1 2019.
“In the current scenario, Enterprises of all sizes are investing in their DC to make it more agile, scalable, flexible thereby making business applications highly available. So, optimizing operational cost will be critical for these enterprises as their architecture evolves and grow,” says Harshal Udatewar, Market Analyst, Server, IDC India.
Vendor Highlights:
In Q1 2019, Dell Inc. emerged as the top vendor accounting for revenue share of 29.7% at the revenue of $78.6 million followed by Hewlett Packard Enterprise (HPE) at number two position with revenue share of 25.6% at revenue of $67.9 million. Dell Inc. continues to grow winning deals across professional services and manufacturing. Cisco was able to register the revenue share of 10.9% followed by Lenovo who stood at 8.0% revenue share at the end of Q1 2019.
“During 2019 Q1, verticals such as professional services, banking, and manufacturing have fueled the ASPs of servers, going forward we see these verticals being accountable for the growth in server ASVs demanding high core, CPU and memory configurations,” adds Udatewar.
IDC India Forecast
The aftereffects of the general elections could be seen from the lack of spending coming from Government barring deals from NSM and various ministries from central government. However, the outlook is positive for India, one of the fastest-growing economies with investments expected to be focussed towards scientific research and development, defence, smart cities and various other projects in the year ahead.
During 2019, we are expecting high spend from telecommunication vertical towards building robust enterprise IT infrastructure for projects related to OSS, BSS, IMS stack for VoLTE, VRAN, 5G testbed programs towards 5G development. From the cloud service providers standpoint, we are expecting capacity expansion from local DC providers in the quarters to come.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company.
Suggested Items
Warm Windows and Streamlined Skin Patches – IDTechEx Explores Flexible and Printed Electronics
04/26/2024 | IDTechExFlexible and printed electronics can be integrated into cars and homes to create modern aesthetics that are beneficial and easy to use. From luminous car controls to food labels that communicate the quality of food, the uses of this technology are endless and can upgrade many areas of everyday life.
iNEMI Packaging Tech Topic Series: Role of EDA in Advanced Semiconductor Packaging
04/26/2024 | iNEMIAdvanced semiconductor packaging with heterogenous integration has made on-package integration of multiple chips a crucial part of finding alternatives to transistor scaling. Historically, EDA tools for front-end and back-end design have evolved separately; however, design complexity and the increased number of die-to-die or die-to-substrate interconnections has led to the need for EDA tools that can support integration of overall design planning, implementation, and system analysis in a single cockpit.
Koh Young Showcases Award-winning Inspection Solutions at SMTconnect with SmartRep in Hall 4A.225
04/25/2024 | Koh Young TechnologyKoh Young Technology, the industry leader in True 3D measurement-based inspection solutions, will showcase an array of award-winning inspection and measurement solutions at SMTconnect alongside its sales partner, SmartRep, in booth 4A.225 at NürnbergMesse from June 11-13, 2023. The following offers a glimpse into what Koh Young will present at the tradeshow:
Real Time with… IPC APEX EXPO 2024: Plasmatreat: Innovative Surface Preparation Solutions
04/25/2024 | Real Time with...IPC APEX EXPOIn this interview, Editor Nolan Johnson speaks with Hardev Grewal, CEO and president of Plasmatreat, a developer of atmospheric plasma solutions. Plasmatreat uses clean compressed air and electricity to create plasma, offering environmentally friendly methods for surface preparation. Their technology measures plasma density for process optimization and can remove organic micro-contamination. Nolan and Hardev also discuss REDOX-Tool, a new technology for removing metal oxides.
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).