Proliferating Uptake by E-commerce Companies Augmented Server Demand in India in Q2 2015: IDC

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The FINANCIAL — According to International Data Corporation (IDC) APeJ Server tracker, the x86 Server market in India grew by 39 percent year-on-year in terms of unit shipment in Q2 2015, while the revenue upswing was of the magnitude of  64 percent year-on-year . Investments from cloud service providers, e-tail companies and telecommunication providers majorly contributed to this quarter’s positive sentiment.

The non x86 server market grew by 15 percent year-on-year in terms of unit shipments and 18 percent in terms of revenue in Q2 2015. BFSI and Communications & Media verticals were the major contributors to this growth, primarily owing to technology upgrade and refresh deals, which are expected to continue in the coming quarters.

White box players continue to marginally penetrate into the traditional infrastructure providers’ market share, however strategic alliances amongst traditional infrastructure players and ODMs is widely being considered to offset this risk in the short-run. The primary objective is to co-create open-standards based cost-effective solutions with a lower cost of ownership.

According to Ruchika Kakkar, Server Market Analyst, “Investments from cloud service providers and e-tail companies is expected to rise furthermore, as there is an enhanced focus on building and upgrading home-grown datacentres in India. Several e-tail companies in India are faced with infrastructure latency challenges and peak-season traffic outages. This is expected to bring-in more investments to build a  robust infrastructure.”

According to Gaurav Sharma, Research Manager – Enterprise (India) , “Upgrade and refresh deals continue to flood the market as ramping up infrastructure becomes the key to sustain and grow in this data driven era. Verticals like Banking and Communication & Media are expected to invest more in compute due to an increased indirect demand of supporting conventional as well as e-business transactions more effectively. “

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Major Vendors

In India x86 market, Dell displaced HP as the leader in Q2 2015 with 39 percent market share in terms of unit shipment, followed by HP with a market share of 34 percent. Lenovo’s market share dropped from 19 percent to 11 percent year-on year. Although white box providers (others) lost marginal market share on a comparative basis, they witnessed 20 percent year-on-year growth in Q2 2015, in terms of absolute unit shipment. Cisco maintained a consistent market share of 4 percent year-on year, however witnessed 31 percent year-on year growth in terms of absolute unit shipment.

On the revenue front, HP continued to lead with 42 percent market share, followed closely by Dell at 40 percent market share. Lenovo held 7 percent market share, followed by Cisco and white box providers (others) at 5 percent and 2 percent, respectively.


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