India Server Market Revenue Down 17.2% to Reach $308.2 Million in 4Q18

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The overall server market in India witnessed a year-over-year (YoY) decline of 17.2% in terms of revenue to reach $308.2 million in Q4 2018 versus $372.1 million in Q4 2017, according to the latest IDC Asia/Pacific excluding Japan (APEJ) Quarterly Server Tracker, Q4 2018. The x86 server market accounts for 86.7% of the overall server market in terms of revenue. The contribution in the x86 market mostly came from the professional services vertical followed by manufacturing, telcos, and Government. 

Investments in the infrastructure remain as the top priority for enterprise business applications, data management, content and collaboration, web infrastructure and‹ application development and testing workloads.

The Intel-based x86 platforms are robust and provide the price-performance balance for enterprises looking to deploy these applications for their end users. However, the large enterprises from the data-intensive industries such as banking and telcos still prefer to use the non-x86 platforms to run their core applications demanding higher availability and performance.

The x86 server market in terms of revenue declined YoY by 17.2% to reach $267.1 million in Q4 2018 from $322.6 million in Q4 2017. Professional services, manufacturing, communications and media, and Government accounted for 84.8% of overall x86 server market revenue. Government saw the biggest Y/Y growth of 104.4% owing to the investments coming from various federal government departments and local state Government projects. The blade and rack servers which contributes for 78.6 percent revenue share has seen a surge in their ASPs due to the higher core, memory and processing configurations for newer workloads demanding higher IOPS.

The non-x86 server market also declined YoY by 17.1% to reach $41.1 million revenue, in Q4 2018. IBM tops the market with a revenue share of 74.3%, followed by HPE with share of 23.9 and Oracle with 1.8% during Q4 2018. Banking remains top vertical with 52% revenue share followed by manufacturing and professional services with 18.9%, and 9% respectively, during Q4 2018.

“In India, the “cloud-first” approach is gaining traction for new-age applications where investments on cloud infrastructure are focused towards building scalability, agility, simplified orchestration and minimizing cost,” says Ranganath Sadasiva , director, enterprise solutions, IDC India.