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Our Bureau

Mumbai , Sept. 10

INCREASED business from the small and medium enterprises and consistent run-rate business contributed to a 31-per cent rise in revenue in the Indian server market during the second quarter of 2004, according to research firm, Gartner.

The Asia-Pacific region, excluding Japan, reported revenues of $1.37 billion during the period, showing a 12.4 per cent increase from the year-ago quarter.

"The second quarter of 2004 followed on the growth trajectory enjoyed in the opening first quarter in the Asia-Pacific," said Mr Mathew Boon, Vice-President (Hardware and Systems), Asia-Pacific.

"There were a number of factors which contributed to this annual growth record, such as the intense competition and price sensitivity in the region as MNCs are taking on local vendors in markets like China."

Indian server market revenues, at over $98 million, were the fourth largest in the region after China, Korea and Australia.

China, the number one country for server revenues in the region (at $488 million), had 35 per cent share in the market, with growth exceeding 23 per cent for the quarter.

Though the second largest in terms of revenues, South Korea reported negative revenue growth, and Australia, the third biggest, showed a growth of 0.3 per cent.

Vendor-wise, IBM was on top with a market share of 37.2 per cent, followed by Hewlett-Packard with a market share of 30.7 per cent.The third biggest vendor during the quarter was Sun Microsystems, was followed by Dell. `Other vendors' - presumably local vendors - accounted for 10.6 per cent market share.

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