Dell Technologies

India Server Market Revenue Declines YoY by 22.1%

The overall Server Market in India witnessed a year-over-year (YoY) decline of 22.1% in terms of revenue to reach $232.1 million in 1Q2020 (Jan-Mar) versus $298.0 million in 1Q2019, according to the latest IDC Worldwide Quarterly Server Tracker, 1Q2020 (June 2020 release). The x86 server market accounts for 85.2% of the overall server market in terms of revenue.

The major contribution to the x86 server market continues to come from the professional services and telecommunications segments, followed by banking and manufacturing verticals. Large deals were witnessed from telecommunication vendors, nationalized banks, digital wallets companies, global high-tech semiconductor manufacturing companies, and various federal government departments during 1Q2020.

The x86 server market in terms of revenue declined YoY by 25.3% to reach $197.9 million in 1Q2020 from $264.9 million in 1Q2019. The decline was due to the lack of spending from global hyper scalers and spillover of deals into the next quarter. The restriction on the movement of goods amidst the pandemic resulted in delivery constraints with customers waiting to materialize their previous orders before placing newer ones. The market is expected to decline further in 2Q2020 due to COVID-19 affecting the financial and operational balance of the industries. Recovery is expected to be observed in 2H2020, owing to spend coming from federal government agencies, bank refresh, and network modernization projects from telecommunication vendors.

The non-x86 server market grew YoY by 3.6% to reach $34.2 million in revenue, in 1Q2020. IBM continues to dominate the market accounting for 74.1% of revenue share, during 1Q2020 with a revenue of $25.4 million. The adoption of IBM’s server offerings is growing primarily across banks for their core banking and internet banking workloads. As a result, 79.4% of its revenue was seen coming from banks, followed by manufacturing. Oracle came at second position followed by Hewlett Packard Enterprise (HPE) with a revenue share of 14.6% and 11.3% respectively.

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