Indian server market may pick up in Q4'09: Gartner
By siliconindia   |   Tuesday, 15 December 2009, 15:25 IST
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Indian server market may pick up in Q4'09: Gartner
Bangalore: The Indian server market could pick up, given the pent up demand coupled with year end buying in the October-November-December (OND) quarter. According to Gartner, the Indian server market totaled at around $118 million during the July-August-September quarter registering a year-on-year decline of 28.3 percent. The reasons for the decline in this quarter could be the sluggish economic situation coupled with the seasonality observed around this quarter. HP emerged as the market leader followed by IBM and Sun Microsystems. HP and IBM were also the worst affected vendors because of the limited market server demand during this quarter in India, reports Business Standard. x86 servers accounted for around 59 percent of the market revenue leading to a revenue increase of 4.4 percent, as compared to the last quarter. This suggests that Indian CIO's have started selective purchase of servers, which can be considered as early signal of economic recovery, says Gartner. Indian companies have undertaken a lot of server refresh and consolidation projects. "Virtualization has been a key driver for such deployments in large as well as mid-market territory. On the other side, non x86 segment of the server witnessed a sequential decline of 35.9 percent this quarter. Some of the large projects seem to be deferred for the next quarter," says the report. Worldwide server shipments for the third quarter of 2009 dropped 17.1 percent over the same quarter last year, while worldwide server revenue for the same period declined 15.5 percent. Worldwide server revenues totaled $10.7 billion for the quarter, while worldwide servers shipments reached 1.2 million units. "It is important to put the yearly declines into perspective," says Jeffrey Hewitt, Research Vice President at Gartner. "Looking at the third quarter results from the sequential perspective, they showed an increase of 13.8 percent in shipments and 10.2 percent in revenues when compared to the second quarter of this year. That suggests the market as a whole is showing signs of stabilization as we move toward the end of 2009."

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