17 Dec 2019

India Server Market Revenues Grew YoY Marginally by 0.8% to Reach $280.1 Million in 3Q19, IDC India Reports

NEW DELHI, December 17, 2019 - The overall server market in India witnessed a Year-over-Year (YoY) growth of 0.8% in terms of revenue to reach $280.1 million in CY 3Q19 versus $277.8 million in CY 3Q18, according to the latest IDC Worldwide Quarterly Server Tracker, 3Q19, December 2019 release. This growth is majorly driven by non-x86 server market as it registered big deals from large public and private banks in India during 3Q19.

The x86 server market in terms of revenue declined YoY by 6.1% to reach $239.0 million in 3Q19 from $254.6 million in 3Q18. Even though the x86 server market had declined, verticals such as banking, government, and manufacturing grew with the YoY growth of 125.4%, 24.0%, and 3.5% respectively in the x86 server market during 3Q19.

The non-x86 server market increased YoY by 77.3% to reach $41.2 million in revenue, in 3Q19. For the third quarter in 2019, HPE has overtaken IBM and now leads the market with a revenue share of 48.4%. IBM stands at the second position with a revenue share of 45.4 % followed by Oracle with 6.1% during 3Q19. Banking remains the top vertical with 83.2% revenue share followed by manufacturing and professional services with 9.9%, and 3.1 % respectively, during 3Q19.

Vendor Highlights:

Source: IDC WW Quarterly Server Tracker, 3Q19, December 2019 release

In 3Q19, Hewlett Packard Enterprise (HPE) and Dell Technologies tied for the number one position in the India server market claiming a revenue share of 27.1% and 26.5% respectively. HPE registered a revenue of $64.7 million with major deals coming from telco, government and banking vertical. Dell Technologies registered revenue of $63.4 million with major deals in banking, manufacturing and telco. Cisco stood at the third position growing YoY by 24.3% and claiming a revenue share of 10.8% to reach at $25.8 million, while Acer Group came at fourth grabbing revenue share of 2.9% and a revenue of $6.9 million owing to the big win from state ICT development project.

Despite poor economic performance and deals getting spilled over, we have noticed verticals such as BFSI, government and manufacturing driving the growth of overall server market in India during 3Q19 ” says Harshal Udatewar, Market Analyst, Server, IDC India.

IDC India Forecast

The poor performance of the Indian economy is expected to hamper the local manufacturing demand, keeping it low and thereby affecting the IT spend. For 4Q19 and the year 2020, we are expecting government and BFSI investments to have a positive effect on the compute spend. In telco, spend from projects such as OSS, BSS, IMS stack for VoLTE, VRAN, and 5G testbed programs towards 5G development would continue to grow throughout 2020. In addition, local cloud service providers will continue to invest in expanding their infra capacity in the coming quarters.

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