As expected, the COVID afflicted 2020 did not bring much encouraging growth in the server market in India. According to the latest IDC Worldwide Quarterly Server Tracker, Q4 2020, the overall server market in India witnessed a year-over-year (YoY) decline of 11.2 percent in terms of revenue to reach $266.1 million in Q4 2020 (Oct-Dec) versus $299.6 million in Q4 2019.
The x86 server market contribution grew to 92.9 percent in terms of revenue, a growth of 4.8 percentage points over last year same quarter. The highest contribution in the x86 market mainly came from the professional services, telecommunications, and manufacturing verticals. In the professional services vertical, original design manufacturers (ODM) and new-age IT companies witnessed positive YoY growth with respect to the server spend. At the processor brand level, AMD witnessed YoY revenue growth of 4.7 percentage points claiming a revenue share of 8.4 percent at the end of Q4 2020.
In Q4 2020, Dell Technologies emerged as the top vendor in the India x86 server market with a revenue share of 29.6 percent and a revenue of $73.1 million. Top three verticals for Dell Technologies were professional services, banking, and discrete manufacturing. HP Enterprise came in at second spot with a revenue share of 19.5 percent and a revenue of $48.2 million. Key verticals for HP Enterprise were telecommunications, discrete manufacturing, and professional services. At number three is Lenovo with a revenue share of 10.9 percent and a revenue of $27.0 million. Cisco came in fourth accounting for a revenue share of 9.1 percent and a revenue of $22.6 million.
The x86 server market in terms of revenue declined YoY by 6.3 percent to reach $247.2 million in Q4 2020 from $264.0 million in Q4 2019. The contribution largely came from the custom-built server category with revenue growth of 28.7 percent YoY. Hyperscalers continues to spend towards building robust data centers and support the global and local customer demands. The General-purpose server revenue declined by 13.4 percent due to the weakening demand across different industries. During Q4 2020, verticals such as utilities, resource industries, and securities and investment services witnessed the highest YoY growth in terms of revenue at 331.5 percent, 218.7 percent, and 160.6 percent respectively.
The non-x86 server market declined YoY by 47.1 percent to reach $18.9 million in revenue in Q4 2020. IBM continues to dominate the market accounting for 49.4 percent of revenue share, during Q4 2020 with a revenue of $9.3 million. HPE came at second position followed by Oracle with a revenue share of 27.8 percent and 8.3 percent respectively.
Harshal Udatewar, Market Analyst, Server, IDC India, said, “During 2020, the server market failed to recover as it remains impacted due to the pandemic. For 2021, we expect the server market demand to grow across hyperscalers, local data center players, telecommunication companies, banking and financial institutions, and manufacturing firms. Government pipeline looks promising and can expect spend in H2 2021”.