NEW DELHI
FEBRUARY 27, 2007

According to Gartner, the Indian server market has witnessed an excellent quarter as it annually grew by 23 percent in terms of the server revenue on the back of an overall shipment growth of six percent. With a shipment of 27,818 units, the Indian server market was pegged at $132.6 million during the last quarter of the year 2006 (Oct-Dec). As compared to last year, this quarter emerged as an excellent quarter with an annual revenue increase of 23 percent. As per the latest Gartner estimates, Indian server market has been sized at $532.2 million for calendar year 2006 with a shipment of 1,13,986 units thus registering annual revenue growth of 11.8 percent in 2006.

"In line with the annual trend in 2006, the quarter witnessed increased shipment of mid-range and high-end systems, which fuelled growth as compared to the same quarter last year," said Naveen Mishra, Senior Analyst, Servers, Gartner India.

During the last quarter of 2006-In terms of shipment growth, Hewlett Packard has been able to gain the leadership position with a market share of 30 percent followed by IBM and Dell with shares 26 percent and 16 percent respectively.

While looking at the market from a revenue perspective, Hewlett Packard (43 percent) and IBM (26 percent) enjoy the first two positions respectively followed by Sun Microsystems (16 percent).

Verticals like banking and finance, telecom, oil and gas, insurance and manufacturing have been the key segment driving the server purchases last quarter. Linux has been making successful inroads into the market place, though Windows continues to enjoy the leadership position in the server operating system space. Blades are gradually becoming more popular, especially in intense computing environments like Data Centre. Trends like consolidation and virtualization are increasingly driving the overall infrastructure expenditure in Indian market.

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