Overall servers sales in India fell 22.1 per cent to $232.1 million in January-March quarter, mainly due to lower spending by global internet giants and impact of Covid-19 pandemic, according to a latest IDC report.

The size of Indian server market was $298 million in the same period a year ago, according to the data published on Tuesday.

The share of Intel chip based or x86 servers, that accounts for 85.2 per cent of the total market value, declined 25.3 per cent to $197.7 million during the reported quarter on year-on-year basis from $264.9 million.

“The decline was due to the lack of spending from global hyperscalers and spillover of deals into the next quarter. The restriction on the movement of goods amidst the pandemic resulted in delivery constraints with customers waiting to materialise their previous orders before placing newer ones,” the report said.

According to IDC, the server market in India is expected to decline further in the second quarter this year due to Covid-19, affecting the financial and operational balance of the industries.

IDC expects recovery to start in the second half of 2020, owing to spending coming from the government agencies, bank refresh, and network modernisation projects from telecommunication vendors.

“In the first quarter of 2020, Dell Technologies emerged as the top vendor in the India x86 server market with a revenue share of 36 per cent and a revenue of $71.3 million,” the report said.

Key wins for Dell Technologies came from professional services, banks, high-tech semiconductor manufacturing companies, and telecommunication vendors.

“I am delighted to share that Dell Technologies has yet again secured the top spot in the Indian server market. I strongly believe that servers are the bedrock of modern data centres and this is clearly something that India businesses understand too,” Manish Gupta, Senior Director and General Manager, Infrastructure Solutions Group, Dell Technologies India said.

Hewlett Packard Enterprise (HPE) came at second spot with a revenue share of 23.1 per cent worth $45.7 million.

“HPE picked up large orders from telecommunication vendors, professional services vertical, manufacturing, and federal government departments,” the report said.

Cisco ranked third with a revenue share of 8.8 per cent at $17.4 million. It was followed by Lenovo with revenue of USD 12.4 million accounting for 6.3 per cent share.

The non-x86 server market, however, grew by 3.6 per cent to $34.2 million revenue in the January-March quarter. IBM dominated the segment with $25.4 million revenue accounting for 74.1 per cent share. Oracle and HPE followed IBM with a revenue share of 14.6 and 11.3 per cent, respectively, according to the IDC.

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