Tuesday, 06 April 2021 09:51

India server market revenue fell by 11.2% in 4Q2020

India server market revenue fell by 11.2% in 4Q2020 Image by Edgar Oliver from Pixabay

The India server market saw a 11.2% drop in revenue in the fourth quarter to US$266.1 million (A$347.4 million), compared to US$299.6 million in the corresponding quarter in 2019, the technology analyst firm IDC says.

The x86 market brought in 92.9% of the revenue, a gain of 4.8 percentage points over 2019. But revenue fell by 6.3% to US$247.2 million from US$264.0 million a year prior.

The sectors that contributed most to the x86 market revenue were professional services, telecommunications and manufacturing verticals. In the professional services vertical, original design manufacturers and new-age IT companies saw positive year-on-year growth in server spend.

At the processor level, AMD enjoyed year-on-year revenue growth of 4.7 percentage points claiming a revenue share of 8.4%.

Hyperscalers kept up their spending to build data centres and support global and local customer demand. Revenue from the general-purpose server market fell by 13.4% due to weakening demand.

india server q4 idc

Verticals such as utilities, resource industries, and securities and investment services witnessed the highest YoY growth in terms of revenue at 331.5%, 218.7%, and 160.6% respectively.

Dell Technologies topped the vendor list in the x86 server market with a revenue share of 29.6% and a revenue of US$73.1 million. The top three verticals for Dell were professional services, banking, and discrete manufacturing.

HPE was second with a revenue share of 19.5% and revenue of US$48.2 million. The key verticals for HPE were telecommunications, discrete manufacturing, and professional services.

Lenovo stood third with a revenue share of 10.9% and revenue of US $27.0 million while Cisco came in fourth, with a revenue share of 9.1% and revenue of $22.6 million.

“During 2020, the server market failed to recover as it was affected by the pandemic," said Harshal Udatewar, market analyst, Server, IDC India.

"For 2021, we expect the server market demand to grow across hyperscalers, local data centre players, telecommunication companies, banking and financial institutions, and manufacturing firms. The government pipeline looks promising and can expect growth in the second half of the year.”

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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