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Mumbai , Sept. 1

THE Indian, Australian and South Korean server markets have shown positive growth in the second quarter of 2003 compared to the same period last year, while Singapore and Hong Kong have seen decline in server revenues over this period.

According to Dataquest Inc, a unit of Gartner Inc, the Indian server market generated revenues of $74.92 million in the second quarter of 2003 compared to $56.2 million in the same period last year, representing a revenue growth of 33 per cent in the period under review.

"The Indian market has seen significant growth in revenue, especially from the Intel-based servers in the first half of 2003," said Mr Vinod Nair, industry analyst for hardware and system research at Gartner.

"Constrained budgets and the tough economic situation had squeezed the server market last year, and the transition of preference to midrange servers and thereby higher price bands, also contributed to better revenue for vendors this year."

Server revenue in the Asia-Pacific region outside of Japan totalled $1.21 billion in the second quarter of 2003, an eight per cent increase from the same period last year, the report said.

"Despite, war, severe acute respiratory syndrome (SARS) and general uncertainty, it appears that some of the regional powerhouses have finally got back on with the job of enhancing infrastructure," said Mr Matthew Boon, Vice-President for Hardware and Systems Research at Gartner.

From a vendor perspective, IBM and Hewlett-Packard increased their market share results over last year. Both vendors registered yearly growth of approximately 11 per cent.

IBM grew in all major markets in the region except Australia, while H-P's revenue declined marginally in South Korea and Singapore.

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