When those new servers you ordered aren't delivered, you probably won't order any more servers - and that's why India's market has shriveled

Except for IBM’s non-x86 boxes which have posted modest growth

India’s server market is shriveling, says analyst firm IDC.

The firm has broken out data from its June 2020 Worldwide Quarterly Server Tracker to report that revenue from x86 server sales in India declined 22.1 percent when measured by revenue in Q1 2020, at $232.1 million compared to $298.0 for the same period in 2019.

But there was a bright spot in the non-x86 market which managed to grow 3.6 percent year on year to reach $34.2 million revenue for Q1 2020. IDC said IBM owns 74 percent of the market and is growing “primarily across banks for their core banking and internet banking workloads.”

Back in the x86 market, IDC said the decline in revenue was due to “lack of spending from global hyperscalers and spillover of deals into the next quarter.”

India’s coronavirus-constricting lockdowns didn’t help either, creating “delivery constraints” that saw customers left waiting for their orders and therefore deferring further buys.

“The market is expected to decline further in 2Q2020 due to COVID-19 affecting the financial and operational balance of the industries,” IDC advises, suggesting recovery may start in the second half of the year “owing to spend coming from federal government agencies, bank refresh, and network modernization projects from telecommunication vendors.”

Dell is India’s dominant server vendor with 36 percent revenue share, ahead of HPE’s 23 percent, Cisco’s 8.8 percent and Lenovo’s 6.3 percent share. ®

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