FY 16 by far is the best year for the Server market. Hardware refresh cycles coupled with Datacenter demand drove the growth. Meanwhile the PC market saw its fortunes fluctuating.
The Server market in India has undergone a transformation in the last 2 years. The period from 2010 to 2014 were some of the difficult times for the server market in India with strong recessionary headwinds trapped growth and traction.
Despite the fact that IT organizations across the world are embracing the on demand models for delivering IT to its stakeholders, Servers continue to be seen as the key infrastructural component.
As we look at the available numbers, as per IDC the server market in India rose by 21.6% year-on-year in Q1 (JFM) 2016, with 40,495 units shipped in Q1 2016 as against 33,292 units in Q1 2015. In terms of revenue, there was a 27.8% year on year growth registered in Q1 2016.
If one looks from CY 2015 perspective, IDC says that the overall server market in India surged by 19.2 % percent in CY 2015, with 157,061 units shipped in 2015 as against 131,695 units in CY 2014. Q4 2015 witnessed 32,853 server units shipped, down by 16.2% over the previous quarter. However, with each of the previous two quarters observing a demand spike in the range of 39,000-51000 units, CY 2015 proved to be landmark year in terms of overall compute demand in India.
On an Indian fiscal year annualized basis, according to DQ estimates the server market during April 15 to March 16 period, the total units would be in the neighborhood of 165,00 units with strong uptick happening in the JFM 2016 quarter.
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