India Server Marketshare by Vendors

ket share, while HPE remained the only vendor who grew its share to 17.8% t during Q1 2017. In non x86 server market banking industry on its own contributed for 57.3% of the revenue, followed by manufacturing and professional services verticals.

VENDOR PLAY

Going by the market trends and DQ estimates, HPE leads the overall market with about 40% market share followed by Dell, Lenovo, Acer and others. According to IDC, it says that in India x86 market, HPE increased its market share from 37.8% in Q4 2016 to 40.3% in Q1 2017 in terms of revenue, followed by Dell with a market share of 20.5% during Q1 2017. Though the market increased Y-o-Y in terms of revenue most of the major vendors failed to maintain their market share, while ODMs have been successful in growing their market share from 0.3% in Q1 2016 to 14.5% in Q1 2017 and Cisco increased its market share to 8.9% in Q1 2017, mainly driven by its blade revenue.

GLOBAL DYNAMICS

If one looks at server market trends globally, going by Gartner, In the first quarter of 2017, worldwide server revenue declined 4.5% year over year, while shipments fell 4.2% from the first quarter of 2016.

“The first quarter of 2017 showed declines on a global level with a slight variation in results by region,” said Jeffrey Hewitt, research vice president at Gartner. “Asia/Pacific bucked the trend and posted growth while all other regions fell. “Although purchases in the hyper-scale data center segment have been increasing, the enterprise and SMB segments remain constrained as end users in these segments accommodate their increased application requirements through virtualization and consider cloud alternatives,” Hewitt said.

Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue. The company posted just more than $3 billion in revenue for a total share of 24.1% for the first quarter of 2017. Dell EMC maintained the # 2 position with 19% market share. Dell EMC was the only vendor in the top five to experience growth in the first quarter of 2017.

OUTLOOK

IDC analysts believe that Digital transformation initiatives from Government towards smart cities, skill India, e-records, education, healthcare are likely to drive the market. Also, increased banking focus towards high compute to handle the voluminous transaction, analytics, and CRM applications are vital factors leading towards the server market growth in the coming quarters. Professional services including IT, ITeS, third party datacentre and public cloud service providers would continue to fuel the server market growth in India.

The servers market is also morphing to the new challenges posed by the technology disruption and vendors are making concerted efforts to sustain their place in the market.