The Indian server market share plummeted by 11.2% to reach US$ 266.1 million every year in the last quarter of 2020 – owing to the deals spillover and low market demand, reports IDC.
India’s economy is close to gaining momentum post lockdown with the beginning of COVID-19 vaccines. From the enterprise spending perspective, investments in computing will come from the global hyperscalers as well as local DC players, telecommunications, banking, and manufacturing sectors.
In fact, the telecommunications spending would be centered on VAS services, network modernization, and the readiness for 5G roll out. Currently, the Indian x 86 server markets is projected to see a year-over-year growth value of about 29.7% in the period of 2020-2021.
Due to the business deals spill over and weakening demand amid the pandemic, the entire server market in India observed a yearly decline of 11.2%. This is in terms of revenue that reached US$ 266.1 million in Q4 2020, claims the IDC WW Quarterly Server Forecast, Q4 2020.
The x 86 server market contributions increased up to 92.9% in terms of revenue, a growth of 4.8% points over the same quarter last year. In its essence, Dell Technologies has emerged as the top vendor in the country’s x86 server market – with a market revenue share of 29.6% and a revenue total of US$ 73.1 million.
Furthermore, HPE came in a second position with a revenue share of nearly 19.5% and revenue of US$ 48.2 million. This is followed by Lenovo, with a market share of 10.9% and a US$ 27.0 million revenue share. Cisco came in the fourth spot, accounting for a revenue share of 9.1% and US$ 22.6 million in revenue.
In this context, Harshal Udatewar, Market Analyst of Server at IDC India, explained, “For 2021, we expect the server market demand to grow across hyperscalers, local data center players, telecommunication companies, banking and financial institutions, and manufacturing firms. Government pipeline looks promising and can expect to spend in H2 2021”.
The most significant contribution in the x86 market is primarily coming from the telecommunications, professional services, and manufacturing verticals. The study also found that at the processor-brand level, AMD observed revenue growth of about 4.7% points (YOY), claiming a revenue share of 8.4% at the end of Q4 2020.
Indeed, the server market in 2020 failed to recover as it was severely impacted due to the pandemic. For 2021, the industry experts trust the server market demand would grow, spanning hyperscalers, local data center players, telecom, banking, and manufacturing firms.
Although the non-x86 server market declined YOY by almost 47.1 to reach US$ 18.9 million in revenue in the last quarter of 2020. In that scenario, IBM continued to dominate the marketplace. However, the Government pipeline looks promising from the statistics and can expect to spend in the second half of 2021.