The overall server market in India witnessed a 1 per cent year-on-year (YoY) decline in revenue to $350.2 million in the second quarter of the calendar year (2Q19). This compares with $353.9 million recorded during the same quarter of previous year, according to an International Data Corporation (IDC) report.
During the quarter, Hewlett Packard Enterprise regained its position as the leading player in the India x86 server market with revenue of $108.4 million and revenue share of 34.4 per cent. Hewlett Packard Enterprise grew YoY by 15.5 per cent with major wins coming in from telecommunication vertical, it said in a statement.
Dell Technologies was the second leading player with a revenue share of 22.8 per cent at a revenue of $71.7 million. Dell Technologies failed to register big wins in this quarter contributing to 13.8 per cent YoY decline in performance.
Cisco was ranked third with a revenue share of 6.6 per cent followed by Lenovo, which came in at fourth with a 5.6 per cent revenue share.
The x86 server market accounted for 89.9 per cent of the overall server market in terms of revenue. The contribution to the x86 server market primarily came from professional services, telecommunication and retail verticals. The market segment witnessed large deals from IT and ITeS customers, nationalised banks, telecom service providers and e-retail in India during 2Q19.
The overall x86 server market declined YoY by 4.9% in terms of revenue to be valued at $314.8 million in 2Q19 from $330.9 million in 2Q18. Despite the decline, verticals such as banking and telecommunications registered YoY growth of 66.6 per cent and 20.9 per cent, respectively, whereas retail registered the highest YoY growth of 936.2 per cent in the x86 market, during 2Q19.
In 2Q19, non-x86 server market increased YoY by 54.2 per cent to reach $35.5 million in revenue. IBM tops the market with a revenue share of 75.9 per cent, followed by Oracle with a share of 20.2 per cent and Hewlett Packard Enterprise with 3.9 per cent during 2Q19. Banking remained top vertical with 68.8 per cent revenue share followed by manufacturing and professional services with 18.7 per cent, and 8 per cent respectively.
"Indian enterprises are transitioning from on-premise servers and virtual servers to cloud workloads. We have noticed spend on compute platforms shifting from traditional IT towards private cloud and public cloud," said Harshal Udatewar, Market Analyst, Server at IDC India.
Forecast
Indian economy is at its slowest pace following a sharp dip in demand across sectors such as agriculture, manufacturing, utilities, and construction, but government spending looks positive towards bringing market growth back on track.
From an enterprise standpoint, increased spending is expected to be coming from the telecommunication vertical and local data centre providers.
Investments from telecommunication service providers would be driven by projects related to Operations Support Systems, business support systems, IP-based Multimedia Services (IMS) IMS stack for value-added services, VoLTE, 5G testbed programs towards 5G development, while local cloud service providers would invest in expanding their infra capacity in the coming quarters.