According to International Data Corporation (IDC) APeJ server tracker; x86 server market in India grew by 7% in terms of revenue in CY 2014 as compared to CY 2013. The major contributors to this growth were Professional Services, Communications & Media, Banking and Manufacturing verticals.
The non x86 server market continued to decline year on year in terms of revenue. The decline was to the tune of 35% in CY 2014 as compared to CY 2013. The long pending refresh and upgrades with Banking and Telecom verticals were the key reasons for this decline as organizations held back their investments due to various reasons like non availability of a positive environment (before elections), evaluation of technology and roadmaps or at times, cost control.
Much of the x86 market growth is attributed to the 3rd platform adoption and acceptability in organizations that is pushing the compute needs to new paradigms. Expansion plans from new age e-commerce and start-ups in different verticals also played their part in 2014 and contributed to the incremental growth. Expansion and refresh amongst the Indian organizations is movingfast and is likely to continue as one of the main reasons for x86 server market growth in CY 2015. SMBs are also expected to further contribute to this positive revival of the market in CY 2015.
According to Janmaijai Dhyani, Server Market Analyst: "CY 2014 saw huge investments in verticals like Retail, Communications and Media which were dormant in CY 2013. This trend is expected to continue as the user base in various shapes and forms is steadily increasing every day. Government vertical investments were half in CY 2014 as compared to CY 2013 because of elections and large projects not getting executed albeit this vertical is expected to revive in 2015”.
According to Gaurav Sharma, Research Manager – Enterprise (India): "CY 2014 saw a constrained demand from certain verticals and segments in terms of investments. CY 2015 is sure to bring back growth prospects owing to positive business sentiments and policies, refresh in the various vendor install bases, 2nd wave of 3rd platform adoption and emergence of new age workloads. 2015 will also be significant due to reasons like execution of large government projects, Lenovo's foray into the Indian server market making it all the more competitive and 4G rollouts making it the year of interest for everyone."
Source: IDC APeJ Quarterly Server tracker 2014
In India x86 server market, HP continued to lead in CY 2014 with 37% market share in terms of units, followed by Dell with a share of 23%. HP saw an increase of 4% while Dell grew by 7% respectively in terms of units (CY 2014 as compared to CY 2013). HP had a market share of 37% in terms of revenue while Dell contributed 27% followed by IBM which was at 13%.
IDC India Forecast
2015 holds a lot of promise as positive government policies and long pending execution of large projects finally begin to take shape. New age organizations in the e-commerce and telecom verticals are also expected to contribute significantly in CY 2015. Education, Hospitality and retail verticals are expected to generate incremental demand in addition to the traditional vertical spending.
