Indian Server Market Declines 28 Percent In Q3

Overall, Indian server market totaled at around $118 million during Q3 2009 registering a year-on-year decline of 28.3 percent, according to the latest Gartner report. The report attributes the market decline partly to the sluggish economic situation coupled with seasonality observed around Q3.

Gartner expects that the OND quarter should be much better primarily fuelled by a lot of pent up demand coupled with year end buying. Overall, HP emerged as the market leader followed by IBM and Sun Microsystems.

According to the report, "x86 servers accounted for around 59 percent of the market revenue leading to a revenue increase of 4.4 percent, as compared to last quarter. This further suggests that India CIO's have started selective purchase of servers, which can be considered as an early signal of economic recovery. India companies have undertaken a lot server refresh and consolidation projects. Virtualization has been a key driver for such deployments in large as well as mid-market territory."

Non x86 server shipments to India witnessed a sequential decline of 35.9 percent during the quarter.  Some of the large projects seem to be deferred for the next quarter.