Story image

Dell and HPE dominate in declining India server market

26 Mar 2019

IDC has released its latest findings surrounding India’s server market – and the news isn’t great.

According to the latest IDC Asia Pacific excluding Japan (APEJ) Quarterly Server Tracker for Q4 2018, the overall server market in India underwent a year-over-year (YoY) decline of 17.2 percent in terms of revenue to reach US$308.2 million in Q4 2018 as opposed to $372.1 million in Q4 2017.

The x86 server market accounted for 86.7 percent of the overall server market in terms of revenue. The contribution in the x86 market mostly came from the professional services vertical followed by manufacturing, telcos, and government.

Investments in the infrastructure remain as the top priority for enterprise business applications, data management, content and collaboration, web infrastructure and application development, and testing workloads.

IDC asserts the Intel-based x86 platforms are robust and provide the price-performance balance for enterprises that are seeking to deploy these applications to their end users. Despite this, the large enterprises from the data-intensive industries such as banking and telcos still prefer to use the non-x86 platforms to run their core applications demanding higher availability and performance.

In an interesting twist, the x86 server market in terms of revenue fell YoY by 17.2 percent – the exact same percentage decline as the market in aggregate – to reach $267.1 million in Q4 2018 from $322.6 million in Q4 2017. Of this, professional services, manufacturing, communications and media, and Government accounted for 84.8 percent of this revenue.

It’s not all doom and gloom though as there was healthy growth among some of the segments.

The government sector saw the biggest YoY growth of 104.4 percent owing to the investments coming from various federal government departments and local state government projects. The blade and rack server market, which contributes for 78.6 percent revenue share, has seen a surge in their average selling prices due to the higher core, memory and processing configurations for newer workloads demanding higher IOPS.

The non-x86 server market also came in with almost the exact same percentage decline as the x86 server market, having waned 17.1 percent to reach $41.1 million revenue in Q4 2018. IBM tops the market with a revenue share of 74.3 percent, followed by HPE with a share of 23.9 and Oracle with 1.8 percent during Q4 2018. Banking remains the top vertical with a 52 percent revenue share followed by manufacturing and professional services with 18.9 percent and 9 percent respectively during Q4 2018.

“In India, the ‘cloud-first’ approach is gaining traction for new-age applications where investments on cloud infrastructure are focused towards building scalability, agility, simplified orchestration and minimising cost,” says IDC India enterprise solutions director Ranganath Sadasiva.

In terms of the vendors, Dell and Hewlett Packard Enterprise (HPE) effectively shared pole position in the India x86 server market with revenue shares of 25.3 percent and 24.6 to reach $67.6 million and $65.7 million respectively.

Dell had a very good year in 2018, managing to post YoY growth of 44.2 percent by year’s end. Cisco was able to register the revenue share of 8.1 percent followed by Lenovo who stood at 6.6 percent revenue share at the end of Q4 2018. ODM direct continued supporting the data centre capacity expansion of tier-1 cloud providers in India and now accounts for 26.2 percent revenue share in Q4 2018.

“The increase in server ASPs across major verticals such as professional services, telcos and banks indicates that newer workloads are gaining traction allowing the scale-up approach, resulting in the higher configuration of servers,” says IDC India server market analyst Harshal Udatewar.

Story image
28 Aug
HPE, VMware announce Cloud Foundation as a Service
The integration of HPE GreenLake, HPE Synergy and VMware Cloud Foundation to enable mutual customers to keep their applications, tools and data in place while benefiting from cloud and composable infrastructure.More
Story image
04 Sep
Wipro and Google Cloud expand partnership to drive cloud adoption
Wipro’s industry-focused solutions, with Google Cloud technologies embedded at their core, will enable enterprises to future-proof their IT investments.More
Story image
06 Sep
Western Digital unveils 20TB mechanical HDDs
Select customers will be able to sample Western Digital’s 18TB Ultrastar DC HC550 CMR HDD and the 20TB Ultrastar DC HC650 SMR HDD, with full production expected to begin in the first half of 2020.More
Story image
28 Aug
VMware expands telco and edge portfolio for CSPs
VMware’s telco and edge cloud portfolio has grown even larger, as the company announces a major portfolio expansion today.More
Story image
09 Sep
Mellanox & Guardicore deliver agentless micro-segmentation for high-speed networks
 “We have long been committed to applying micro-segmentation techniques to help enterprise security teams cost-effectively reduce risk and limit the attack surface inside the data centre without impacting performance."More
Story image
09 Sep
VMware's open pledge to help partners and customers make their mark
Technology is neither good nor bad, but it’s often how we shape it. Will technology shape the world we want to live in? Or will it create a world we’re afraid to live in?More