India Server Market records 51.1 % YoY growth in Q3 2017

According to the latest IDC Asia-Pacific Quarterly Server Tracker, Q3 2017, the overall server market in India has witnessed a year-over-year (YOY) growth of 51.1 per cent in terms of revenue to reach $300.83 million in Q3 2017 versus $199.05 million in Q3 2016.
 

The x86 server market continues to grow accounting for 89.7 per cent of the overall server revenue by product category. The growth primarily resulted from the expansion of Data Centers (DCs) and increase spending from public cloud players, during Q3 2017. The other reason for the growth of x86 platform can be strongly co-related to the fact that Linux is becoming the OS of choice for enterprises running new-age workloads.

ODM players who are strategically targeting the new buyer segment like third-party DC and public cloud service providers have successfully reached revenues of $105.0 million at end Q3 2017. As a result, the x86 server market has grown YoY by 64.3 per cent to reach $269.9 million during Q3 2017. The key verticals that witnessed growth were professional services, accounting for 61.4 per cent of market share, followed by manufacturing with market share of 11.9 per cent, in terms of revenues.

At the form factor level, rack and blade together accounted for 81.9 per cent of overall server market by revenue. Rack servers were preferred by end-users who are looking for excellent application performance at low cost. Blade servers grew with a YoY growth of 9.2 per cent in terms of revenues; professional services and manufacturing verticals had shown increased adoption towards blade servers, while telecommunication vertical witnessed a marginal increase in contribution towards blade revenues.

The non-x86 market declined annually by 11.2 per cent to reach $30.95 million in Q3 2017, major contribution for this product category came from banking, accounting for 76.2 per cent of the revenue share, followed by government, manufacturing, retail and telecommunications vertical. Some of the banking deals were purely refresh, while others were focussed towards supporting the new payment modes. In terms of revenue, IBM came back strongly, accounting for 59.8 per cent of market share, followed by HPE with the share of 25.6 per cent during Q3 2017.

HPE continues to dominate the x86 Server market with the share of 23.9 per cent in terms of revenue, followed by Dell with revenue share of 18.0 per cent and Cisco contributing for 8.6 per cent of revenue share, during Q3 2017.The major deals for HPE came from professional services and manufacturing verticals. ODM direct accelerated growth continues with high dependence on major public cloud service providers spending in India.

"Professional services, manufacturing, and BFSI are the next growth verticals, so positioning vertical focussed strategies and programs specific to partner would yield good results for vendors," says Harshal Udatewar, Server Market Analyst, IDC India.

Tags: India Server Market, Q3 2017, IDC, x86 server market, public cloud players, ODM players, IBM, hpe, varindia, server market in india, BFSI, Harshal Udatewar Server Market Analyst IDC India