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The Transformation of Server Market

Servers have a key role in an organization’s IT infrastructure as they server-marketprovides data security, enhanced operational efficiency and energy saving. Growing SMBs and increasing IT spending in IT & ITeS, retail, telecommunication, BFSI and government sectors is boosting the server market in India. With rapid growth in IT spending in India, companies are expected to spend more on advancing their IT infrastructure, which include devices, data center systems, software, etc. Majority of the server companies, including IBM, HP and Dell, are focusing towards new servers designs such as blade servers and cloud servers. This is on account of higher energy saving potential and minimization of space and cabling requirements in enterprises. South is the leading region in India’s server market, wherein, cities such as Bangalore, Chennai, Delhi, Mumbai and Hyderabad are the key contributors.

According to “India Server Market Forecast & Opportunities, 2019, the Indian server market revenues are projected to grow at a CAGR of around 7.4% during 2014-19. The demand for servers is majorly driven by growing SMB market, increasing popularity and adoption of x86 based blade servers.

Though with the arrival of virtualization, there is a Teutonic shift in the landscape. Less utility of physical servers is a big reason for innovations in the server space, giving rise to newer, smarter, faster and small technologies. Another trend in the servers transformation process is the adoption of hyper scale devices, but only for limited markets. “These are meant to be for enterprises that need to scale applications to a large extent. But this has not lead to the death of the market, only a transformation of the product, and the way the technologies have been used. There is a new market awaiting the new family of servers that will be used in the new age of IT- an age dominated by analytics, insights and mobility. The new business dynamics will require new efficiencies and functionalities, newer definitions of RoI and also, newer way of functioning of enterprises.

There is a new market growing where the old one is slowing down, so it’s not cause for concern, not yet at least!

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