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India Server Market Revenue Down by 8.1% to Reach $276.6M in Q3 2018
December 24, 2018 | IDCEstimated reading time: 1 minute
The overall server market in India witnessed a year-over-year (YoY) decline of 8.1% in terms of revenue to reach $276.6 million in Q3 2018 versus $300.9 million in Q3 2017, according to the latest IDC Asia Pacific excluding Japan (APEJ) Quarterly Server Tracker, Q3 2018. The x86 server market has degrown for Q3 2018 which accounted for 91.6% of overall server market in terms of revenue. The decline is majorly due to the absence of multi-million dollar deals from IT and ITeS service providers and spillover of telco deals in the coming quarters.
Modernization of traditional infrastructure remains as the core priority for the enterprises across different verticals in India. Almost more than 90% of the enterprises are planning to invest in digital initiatives from creating new business models, to reimagining their existing business through process reengineering to attract and retain their existing customers and enhancing their customer experiences creating a demand for the compute to meet these business objectives.
During Q3 2018, the x86 server market in terms of revenue declined YoY by 6.1% to reach $253.4 million in Q3 2018 up from $269.9 million during Q3 2017. Professional services accounted for 57.5% of overall x86 server market revenue contribution followed by telecommunications with 10.4% during Q3 2018. Manufacturing and Banking were slow during Q3 2018 owing to limited new deals and small upgrades. In x86 market, volume servers declined by 7.2% to $240.2 million, while midrange server increased by 24.6% to reach $13.2 million in Q3 2018. Non-intel platforms are still preferred for the high-end category of servers by most of the large end-users.
The non x86 server market generated $23.2 million revenue, with a YoY decline of 24.9%age points, in Q3 2018. IBM led the market with a revenue share of 63.8%, followed by Oracle with share of 22.5 and HPE with 13.8% during Q3 2018. Banking remains top vertical with 51.8% revenue share followed by manufacturing and professional services with 22.5%, and 8.9% respectively, during Q3 2018.
“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” says Ranganath Sadasiva , director, Enterprise Research, IDC India.
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