India server revenue increases 31% in Q2, 2004

The Indian server market revenue has registered a growth rate of 31 percent over last year. The revenue increased from
$74.9 million in the second quarter of 2004 to $98.3 million in the second quarter of 2003. Increased
business from small and medium businesses contributed healthily to overall revenue, apart from the consistent run-rate business.

Asia/Pacific (excluding Japan) server revenue totaled $1.37 billion in the second quarter of 2004, a 12.4 percent increase
from the same period last year, according to Gartner, Inc.

Gartner's VP for hardware and systems in Asia Pacific Matthew Boon commented, "The second quarter of 2004 followed on
the growth trajectory enjoyed in the opening first quarter in Asia Pacific." He further noted,
"There were a number of factors which contributed to this annual growth record such as the intense competition and price sensitivity in the region,
as multinationals take on local vendors in markets like China. This has allowed users to leverage such unique conditions and
increase purchases." 

China continued to be the No. 1 country for server revenue in Asia/Pacific followed by Korea and Australia. China grabbed 35 percent market share with
annual growth exceeding 23 percent. From a vendor perspective, IBM garnered 37 percent
market share to top the list followed by Hewlett-Packard (HP) with 31 percent market share. Both
vendors recorded annual  growth of 16 percent and 12 percent respectively. 

Sun Microsystems, on the other hand, witnessed a revenue decline of four percent. Sun fared well in China and India while its
revenue declined in Australia, Korea and Singapore.

CyberMedia News

Mumbai