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Home > News > PC-Servers
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Indian Server Market to Grow with SMB Thrust

By ChannelTimes Staff
Mumbai, Jun 14, 2008

In its recent study, New York-based Access Markets International (AMI) Partners said that Indian small and medium businesses (SMBs, or companies with up to 999 employees) are set to spur more than 20% growth in server spending - amidst concern of an overall server market slowdown in 2008. Increase in new distributed computing workload deployments will drive the rise in number of units shipped in the SMB segment. The predicted growth in this segment is at healthy 15%.

Partha Sarathi Sengupta, manager (Strategic Market Analysis) at AMI Partners said, "Server technology is constantly evolving to keep up pace with ever-changing business requirements and expansion needs of the SMBs. There is hardly any possibility of spending growth rate to drop significantly in the coming year - as the industry is in the phase of rapid infrastructure upgrades."

However, the sector has modified its attitude toward things. SMBs and especially medium businesses (MBs, or companies with 100 to 999 staff) have definitely moved up in the value-chain and are now looking at a consolidated approach - where the server will be able to do multi-level complex tasks resulting in higher optimization of IT investments and lowering TCO.

Sengupta observes, "Blade servers are making inroads into the traditional rack and tower servers. These new generation servers, which consume less power and occupy less space, are gradually aknowledged in the Indian SMB marketplace, as customers want to minimize their energy and operational costs while expanding their IT infrastructure."

"The x86 and x86-64 servers are emerging as the ideal server platforms for Indian SMBs running enterprise applications. The trend of server virtualization is also catching up among the Indian SMBs and the impact of virtualization is more on x86 servers," he added.

However, there is a huge scope at the entry-level servers -- especially among small businesses (SBs, or companies with up to 99 staff). Small businesses, even in the upcountry markets, are demanding a robust infrastructure for their business needs and are investing in technology solutions.

The recent AMI study reveals that over 35% of PC-owning Indian SBs in the 20-99 employee range are looking forward to their maiden server purchase this year. Apart from traditional vertical markets like BFSI, telecom and manufacturing, businesses in the construction and media or entertainment verticals will have a significant impact on server market growth.

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As a reseller, what s your comment on the study?

     
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Comments
                                         16/06/08 08:24 AM
                                         Report as offensive
With Barcelona from AMD in the market, Yes the market is wide open... and Traditional Buyers would be suprised by sudden surge of buy from the SMB....
- Vishal Arora, IT corner, Delhi
Reply  
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