As per International Data Corporation’s Worldwide Quarterly Server Tracker, the overall server market In India saw a 6.4% YoY growth in Q2, 2021. It is expected to reach a market share revenue of $289.5 million as against the $270.2 million in Q2, 2020. The server market is mainly dominated by x86 servers which accounts to almost 90.4% of the total revenue. This is in fact 4.8% higher than what was accounted for in the same quarter last year.
The x86 server market is highly dominated by professional services, manufacturing, telecommunications and banking verticals. Professional services verticals like fintech, cloud solution providers (CSPs), telecom providers, IT/ITes companies have dominated the most spending. With an enthusiastic focus on digitalization and modernization, the manufacturing and banking sectors have also opened their wallets and invested heavily. The x86 server market in Q2, 2021 saw an increased revenue of $261.6 million as compared to $232.9 million in Q2, 2020. This shows that the x86 server market grew at a rate of 12.3% YoY in terms of revenue. Industry verticals such as media, resources and insurance witnessed the best YoY growth in terms of the revenue earned
The non-x86 server market declined by about 28.8% (YoY) to reach $27.9 million in revenue earned in the second quarter of 2021. The same time period last year saw a market revenue of $39.1 million. IBM is the clear leader in the non-x86 server market with a revenue share of about 41.1% which equates to $11.5 million. Oracle is in the second position followed by Hewlett Packard (HP), with a revenue share of 18.4% and 4.5%, respectively in the second quarter of 2021.
Dell Technologies emerged as the no.1 vendor in India’s x86 server market with a revenue share of 25.2%, which equates to about $65.8 million. The top three clients in terms of industry verticals for Dell Technologies were banking, telecommunications, and professional services. Hewlett Packard came at a close second spot with a market share of 23.8%, equating to a revenue of $62.2 million. The key business verticals for Hewlett Packard Enterprise were telecommunications, manufacturing, and professional services. Lenovo and Cisco rank at the third and fourth position, with a revenue share of 8.5% and 7.5%. Lenovo has absolute revenues of $22.2 million and Cisco has a revenue of $19.6 million.
IDC’s India server market forecast
According to Angad Pandey, Market Analyst, Server, IDC India, “We anticipate the growth momentum to continue for the second-half of 2021, amid multiple issues in the supply chain which is expected to normalize in the next couple of quarters. We also expect the lead times for server shipments to increase by couple of weeks which might lead to marginal increase in the average selling price. The overall market sentiment looks positive; we expect YoY 25.0% growth in value for the India server market, CY 2021”.