Stunted by Dis­rup­tion

Glob­ally the server mar­ket is go­ing through a de­pres­sion, but due to ag­gres­sive dig­i­tal ini­tia­tives in India, FY 18 is ex­pected to be a bet­ter year than FY 17

Dataquest - - SERVERS -

Ac­cord­ing to Dataquest es­ti­mates the India x86 server mar­ket is pegged at ` 5,400 crore rep­re­sent­ing a very mar­ginal sub 5% growth com­pared to last year. The units ship­ments os­cil­lated quar­ter

wise and Q4 FY 17 ( Q1 CY 17) can be termed as an uptick quar­ter with mar­ket see­ing growth trac­tion.

Go­ing by IDC’s Asia Pa­cific ex­clud­ing Ja­pan (APEJ) Quar­terly Server Tracker, Q1 2017, the over­all server mar­ket in India wit­nessed a quar­teron-quar­ter (QoQ) in­crease of 14.2% in terms of rev­enue to reach $215.6 mil­lion in Q1 2017 as against $188.8 mil­lion in Q4 2016. The x86 server mar­ket ac­counted for 90.7% of the over­all server rev­enue dur­ing Q1 2017 with growth be­ing ma­jorly driven by the spend­ing of pub­lic cloud ser­vice providers for their data cen­ters.

IDC fur­ther states that the pub­lic cloud up­take and dig­i­tal trans­for­ma­tion across bank­ing and gov­ern­ment ver­ti­cals are driv­ing the server mar­ket in India. The x86 server mar­ket in terms of rev­enue wit­nessed a yearover-year (YoY) growth of 3.9 per­cent to reach $195.6 mil­lion in Q1 2017 up from $188.2 mil­lion dur­ing Q1 2016.

The en­ter­prise mi­gra­tion to cloud and role of emerg­ing tech­nolo­gies such as Ar­ti­fi­cial In­tel­li­gence, IoT, and an­a­lyt­ics are at­tract­ing the global pub­lic cloud providers to ex­pand their foot­prints in India. Den­sity op­ti­mized servers are mostly preferred for cloud work­loads which are gain­ing trac­tion, ac­count­ing for sig­nif­i­cant growth in terms of rev­enue for Q1 2017 over the pre­vi­ous quar­ter.

The non-x86 server mar­ket de­clined by 22.3% YoY in terms of rev­enue to reach $20.0 mil­lion in Q1 2017. In terms of rev­enue, IBM led the mar­ket, ac­count­ing for 50% mar-

The x86 server mar­ket ac­counted for 90.7% of the over­all server rev­enue dur­ing Q1 2017

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