India server market crosses $700 million

Bangalore

April 7 2008

According to IDC's Asia-Pacific Quarterly Enterprise Server Tracker, Q4 2007,
March 2008 release, the overall India server market has seen a healthy growth as
customers continued to refresh and expand their IT infrastructures.

During calendar year 2007 the overall India server market factory revenue
grew by 24 percent over calendar year 2006 to touch $727 million* and unit
shipments grew by 19 percent to 1,35,615 during the same period. Apart from
traditional sectors like telecom, BFSI and manufacturing, 2007 also saw the
emergence of retail and construction as key demand drivers.

Table 1: Overview of India Server Market 2007

India x86 server market

During CY 2007, factory revenues of the India x86 server market grew by 24
percent over 2006 to touch $414 million*, while unit shipments grew by 21
percent to 1,26,940 units, during the same period.

HP emerged as the market leader in the India x86 server market with 33
percent share during 2007, both in terms of factory revenue as well as unit
shipments.

According to Amit Dalal, Analyst-Enterprise Computing Products Research,
IDC India, “The blade server market continued to be the hot segment for x86
servers during 2007. The market was abuzz with initiatives like ramping up of
product portfolios and education of customers through events and contact
programs. These programs demonstrated product benefit themes like hot swapping,
reducing redundancy and reduction in cabling, power and space requirements.”

In 2007, the India x86 blade server market recorded a growth of 103 percent
over 2006 with 12,146 units shipped. HP dominated the India x86 blade server
market with 64 percent of total x86 blade server shipments in 2007, followed by
IBM with a 28 percent share.

India non-x86 server market

Factory revenues of the India non-x86 server market also grew by 24 percent
YoY to touch $313 million* in 2007. IBM emerged as market leader in the India
non-x86 server market with a 38 percent share in 2007 in terms of factory
revenue.

The India non-x86 server market was driven by the expansion plans of major
telecommunication service providers and customers in the BFSI sector. This
helped the India non-x86 server market to cross the $100 million mark for the
first time in a single quarter during Q4 2007 (October-December).

IDC's Worldwide Server Taxonomy maps the 11 price bands within the server
market into three price ranges: volume servers (servers priced less than
$25,000), mid-range enterprise servers ($25,000 to $49,999) and high-end
enterprise servers ($50,000 or more). The revenue data presented in this release
is stated as factory revenue to determine the marketshare position. Factory
revenue represents dollars recognized by multi-user system and server vendors
for initial server shipments (ISS) and upgrade units sold through direct and
indirect channels and includes the embedded server components like-frames or
cabinets and cables, processors, memory, communication boards, operating system
software, other bundled software and initial internal and external storage disk
shipments.

*Conversion rate, CY 2007: 1 $ = Rs 41.357

**Conversion rate, Q4 2007: 1 $ = Rs 39.497