Indian server market surges ahead in Q2 '07

New Delhi

September 24th, 2007

The India server market grew by 30 percent year-on-year to touch Rs 698 crore
factory revenues during the second quarter of 2007, according to IDC's
Asia/Pacific Quarterly Enterprise Server Tracker for Q2 2007.

This was the second consecutive quarter when unit shipments grew by
approximately 12 percent over the previous quarter. The unit shipments increase
in the India server market are mainly driven by expansion of new distributed
computing workload deployments across key segments.

The high-end enterprise server space saw a 91 percent year-on-year growth in
Q2 with market traction coming in from the financial services, communications
and media. The mid-range enterprise server segment however witnessed muted
growth with 4 percent year-on-year growth while the volume server segment
recorded 32 percent growth mainly from the financial services and manufacturing
verticals.

Amit Dalal, Analyst for Server Research, IDC India, said, "The India
Server market is poised to show strong momentum in the coming quarters as well.
While demand for volume servers will increase beyond the metros, the need for
scale will continue to create demand for high-end and mid-range servers as
well."

The overall India server market shipments during 2Q 2007 aggregated to 35,615
units, with HP emerging as the leader both in terms of factory revenues as well
as unit shipments during 2Q 2007, followed by IBM.

During the quarter, the Indian x86 server market performed well across the
financial services, infrastructure services, distribution services and
manufacturing sectors, clocking revenues of nearly Rs 445 crore, which
corresponded to 33,323 unit shipments. HP held on to its number one position in
this segment both in unit shipments and factory revenue terms, followed by IBM
and Dell.

The India non-x86/Unix server market saw phenomenal growth across various
verticals, mainly financial services, infrastructure services and distribution
services, clocking nearly Rs 227 crore corresponding to 2,246 units during 2Q
2007. Sun Microsystems was the market leader in the non-x86/Unix server segment
both in terms of unit shipments as well factory revenues, followed by IBM and
HP.

The India blade server market in 2Q 2007 grew by 165 percent over 2Q 2006 in
terms of factory revenues, which corresponded to approximately 8 percent of the
total India server market revenues during the quarter. The growth in shipments
of blade servers clearly shows that its adoption is on the rise and that CIOs
are becoming more aware about manageability, space and cooling aspects of data
centers. The vendors are also playing a significant role in terms of launching
new products and technology and creating awareness amongst users.