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Indian server market Q1 growth at 27%

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MUMBAI, May 27

THE domestic server market revenue grew by 27 per cent in the first quarter of 2003 over the figures recorded in the same period last year, registering the highest growth in the Asia Pacific market.

According to Gartner Inc, revenue in the first quarter of the current year stood at $69,19,79,25 compared with $54,46,34,98 in the previous corresponding quarter.

A statement from Gartner, quoting Mr Vinod Nair, analyst for hardware platforms in Gartner India, said: "Increased uptake of Intel-based servers and end-fiscal buying by government and corporate contributed to this growth."

The high growth in the Indian market was also attributed to the lower-than-average performance in the same quarter last year. Continuing the previous trend, finance and banking, besides telecom and Government were the main buyers.

China, with a 32 per cent market share in the Asia Pacific, remained the top market for server revenues in the region. However, it showed an 8 per cent rise for the quarter. The major consumption areas were telecom and education, while hardware purchases in Government and finance remained stable.

The Asia Pacific server revenue totalled $1.12 billion in the first quarter this year, showing a 7 per cent increase from the same period last year. Though they saw this trend as encouraging, analysts expected some segments of the industry to be affected by the spread of SARS.

While the Singapore server market revenue fell 5 per cent, Australia posted a 10 per cent increase.

During the period under review, all the major multinational server vendors with the exception of Sun Microsystems, maintained or grew their overall server market share. Sun lost a 1 per cent market share in Asia-Pacific, while Dell accounted for a 4.7 per cent share, up from 3.3 per cent in the previous corresponding quarter.

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