Indian server market declined 16% in Q1 2019: IDC

The server market in India registered a year-over-year (YoY) decline in revenue of 16.2% to $298 million in the first quarter of 2019 from $355.8 million in the corresponding quarter of 2018, according to a quarterly report by the Massachusetts-based advisory firm International Data Corporation (IDC).

The report, titled ‘Asia / Pacific Quarterly Server Tracker’, also said revenues for the x86 server market declined 19%. The x86 server market accounts for nearly 89% of the overall server market in terms of revenue. The demand for x86 servers came predominantly from the professional services vertical, followed by manufacturing, banking, the public sector and the telecom sector, the report said. 

Revenues for the non-x86 server market increased YoY by 15.9%. IBM, as per the report, accounted for 75% of the non-x86 server market. The banking sector remained the top vertical in the non-x86 server market, followed by the manufacturing sector. 

Dell as the top vendor, as per the IDC report, accounting for about 30% of first-quarter revenue. The American hardware manufacturer was followed by Hewlett Packard Enterprise, Cisco and Lenovo. 

“During 2019 Q1, verticals such as professional services, banking and manufacturing have fueled the ASPs (active server pages) of servers,” Harshal Udatewar, market analyst, server, IDC India, said. 

Findings from earlier IDC reports:

• Only 25% organisations have adopted an enterprise-wide AI strategy
• The Indian software market is slated to grow 13.7% by the end of 2019
• Only two out of five consumers in India trust organisations offering digital services to protect their personal data.