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India Server Market Revenue Fell YoY by 11.2% in Q4 2020

Deepa Sharma by Deepa Sharma
April 1, 2021
Reading Time: 3 mins read
Server

Image Credit: Pixabay

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The server market in India saw a year-over-year (YoY) decline of 11.2% in terms of revenue to reach $266.1 million in the Q4 of 2020 (Oct-Dec) versus $299.6 million in Q4 2019, Says, IDC Worldwide Quarterly Server Tracker report, Q4 2020 (March 2021 release).

The x86 server market contribution rose to 92.9% in revenue increase, an increase of 4.8 percentage points over last year’s same quarter. The highest contribution in the x86 market essentially came from the professional services, telecommunications, and manufacturing verticals. In the professional services vertical, original design manufacturers (ODM) and new-age IT companies witnessed positive YoY growth concerning the server spend.

On the basis of processor brand, AMD saw YoY revenue growth of 4.7 percentage points, claiming a revenue share of 8.4% at the end of Q4 2020. The x86 server market in terms of revenue declined YoY by 6.3% to reach $247.2 million in Q4 2020 from $264.0 million in Q4 2019.

The contribution mainly came from the custom-built server category with revenue growth of 28.7% YoY. Hyperscalers continues to spend towards building robust data centers and support the global and local customer requirements. The General purpose server revenue decreased by 13.4% due to the weakening demand across various industries. During Q4 2020, 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. The non-x86 server market decreased YoY by 47.1% to reach $18.9 million in revenue in Q4 2020.

IBM continues to dominate the market accounting for 49.4% of revenue share, during Q4 2020 with a revenue of $9.3 million.
HPE came at the second position, followed by Oracle, with a revenue share of 27.8% and 8.3%.

Source: IDC

In Q4 2020, Dell Technologies appeared as the top vendor in the India x86 server market with a revenue share of 29.6% and a revenue of $73.1 million. The top three verticals for Dell Technologies were professional services, banking, and discrete manufacturing.

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HPE came at second spot with a revenue share of 19.5% and a revenue of $48.2 million. Key verticals for HPE were telecommunications, discrete manufacturing, and professional services.

At number three is Lenovo, with a revenue share of 10.9% and a revenue of $27.0 million. Cisco came in fourth, accounting for a revenue share of 9.1% and a revenue of $22.6 million.

“During 2020, the server market failed to recover as it remains impacted due to the pandemic. For 2021, we expect the server market demand to grow across hyperscalers, local data center players, telecommunication companies, banking and financial institutions, and manufacturing firms. Government pipeline looks promising and can expect spend in H2 2021,” says Harshal Udatewar, Market Analyst, Server, IDC India.

IDC India Forecast India’s economy is on the verge of gaining momentum post-Covid-19 lockdown and roll out of coronavirus vaccines. We anticipate investments in compute to come from global hyper scalers and local DC players, telecommunications vertical, banking sector, and manufacturing vertical from an enterprise spending perspective. Telecommunications spending would be focused on network modernization, VAS services, and preparing for 5G roll out.

At present, India x86 server market is expected to witness a YoY growth in value by 29.7% between 2020 and 2021, according to the latest IDC WW Quarterly Server Forecast, Q4 2020 (March 2021 Release).

News Source: IDC

Also Read: Low Code: Transforming Banking, Today and Tomorrow

Deepa Sharma

Deepa Sharma

Senior Writer and Editor at CXO VOICE, She covers technology, cybersecurity, and financial and other tech news and updates. She can be reached at "deepa@cxovoice.com"

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