India x86 Server Market Grows by 21.6% in Q1 2016

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According to International Data Corporation (IDC), server market in India rose by 21.6% 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% year on year growth registered in Q1 2016.

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 cities initiatives and surveillance projects further propelled compute demand nationwide.

The non x86 server market grew by 15.3% year on year in terms of unit shipments and 42.4% 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.

According to Ruchika Kakkar, Server Market Analyst, IDC India, “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."

According to Gaurav Sharma , Research Manager, Research Manager- Enterprise & IPDS, IDC India, "Digital initiatives, consolidation projects, refresh and upgrades and growing need for compute due to 3^rd platform deployments are all in line to drive demand in the coming quarters.”