Indian server market at 532.2 Mn in 2006: Gartner

Mumbai, February 26, 2007: According to Gartner, the Indian server market has witnessed an excellent quarter as it annually grew by 23% in terms of the server revenue on the back of an overall shipment growth of 6%. With a shipment of 27, 818 units, the Indian server market was pegged at $ 132.6 mn during the last quarter of the year 2006 (Oct-Dec).

As compared to last year, this quarter emerged as an excellent quarter with an annual revenue increase of 23%. As per the latest Gartner estimates, Indian server market has been sized at 2.2 mn for calendar year 2006 with a shipment of 1,13,986 units thus registering annual revenue growth of 11.8% in 2006. "In line with the annual trend in 2006, the quarter witnessed increased shipment of mid-range and high-end systems, which fuelled growth as compared to the same quarter last year"-said Naveen Mishra, Senior Analyst, Servers, Gartner India.

During the last quarter of 2006-In terms of shipment growth, Hewlett Packard has been able to gain the leadership position with a market share of 30% followed by IBM and Dell with shares 26% and 16% respectively. Table 1 presents the overall market situation as below-

Table 1 India: Server Vendor Shipment Estimates, 4Q 2006

Company

Q4 2006 Shipment

Q4 2006 Market Share (%)

Q4 2005 Shipment

Q4 2005 Market Share (%)

Q406-Q405 Growth (%)

All

27818

100%

26,289

100%

6%

Hewlett-Packard

8,379

30%

6,816

26%

23%

IBM

7,252

26%

8,373

32%

-13%

Dell Inc.

4,330

16%

3,320

13%

30%

HCL

3,326

12%

3,014

11%

10%

Sun Microsystems

1,730

6%

1,576

6%

10%

Others

2,801

10%

3,190

12%

-12%

Source: Gartner Dataquest (February 2007)While looking at the market from a revenue perspective, Hewlett Packard and IBM enjoy the first two positions respectively followed by Sun Microsystems, as presented in Table 2-

Table 2-India: Server Vendor Revenue Estimates, 4Q 2006
(U.S. Dollars)

Company

Q4 2006 Revenue

Q4 2006 Market Share (%)

Q4 2005 Revenue

Q4 2005 Market Share (%)

Q406-Q405 Growth (%)

All

1,325,836,58

100%

107,711,473

100%

23%

Hewlett-Packard

56,860,498

43%

34,062,450

32%

67%

IBM

35,108,539

26%

34,313,995

32%

2%

Sun Microsystems

20,601,033

16%

18,313,311

17%

12%

Dell Inc.

8,692,767

7%

7,524,741

7%

16%

HCL

6,524,179

5%

7,206,723

7%

-9%

Others

4,796,642

4%

6,290,253

6%

-24%

Verticals like Banking and Finance, Telecom, Oil and Gas, Insurance and Manufacturing have been the key segment driving the server purchases last quarter. Linux has been making successful inroads into the market place, though Windows continues to enjoy the leadership position in the server operating system space. Blades are gradually becoming more popular, especially in intense computing environments like Data Centre. Trends like consolidation and virtualization are increasingly driving the overall
infrastructure expenditure in Indian market.

Sources

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