New Delhi, September 19, 2007: According to IDC’s Asia/Pacific Quarterly Enterprise Server Tracker, 2Q 2007, September 2007 release, the India Server market grew by 30% year-on-year to touch US$ 169 million (INR 698 crore*) factory revenues during the second quarter of 2007. This was the second consecutive quarter when unit shipments grew by approximately 12% over the previous quarter. The unit shipments increase in the India Server market are mainly driven by expansion of new distributed computing workload deployments across key segments. 

India Server Market by Product Category

Product Category	Year-on-Year Growth(in terms of Factory Revenue, 2Q07/2Q06)	Major Contributors
High-end Enterprise Servers	91%	Financial services, Communications & Media
Mid-range Enterprise Servers	4%	Communications & Media
Volume Servers	32%	Financial services, Manufacturing

Market Standing by Vendors

• The overall India Server market shipments during 2Q 2007 aggregated to 35,615 units. HP emerged as the leader both in terms of factory revenues as well as unit shipments during 2Q 2007, followed by IBM.

• During the quarter the India x86 Server market performed very well across the Financial services, Infrastructure services, Distribution services and Manufacturing sectors, clocking revenues of nearly US$ 108 million (INR 445 crore*), which corresponded to 33,323 unit shipments. HP held on to its number 1 position in this segment both in unit shipments and factory revenue terms, followed by IBM and Dell. 

• The India non-x86/Unix Server market has seen phenomenal growth across various verticals, mainly Financial services, Infrastructure services and Distribution services, clocking nearly US$ 55 million (INR 227 crore*) corresponding to 2,246 units during 2Q 2007. Sun Microsystems was the market leader in the non-x86/Unix server segment both in terms of unit shipments as well factory revenues, followed by IBM and HP. 

The India Blade server market in 2Q 2007 has grown by 165% over 2Q 2006 in terms of factory revenues, which corresponded to approximately 8% of the total India Server market revenues during the quarter. The growth in shipments of Blade servers clearly depicts that adoption is on the rise and CIOs are becoming more conscious about manageability, space and cooling aspects of Data Centers. The vendors are also playing a significant role in terms of launching new products and technology and creating awareness amongst users.

According to Amit Dalal, Asst. Manager, Server Research, IDC India, “The India Server market is poised to show strong momentum in the coming quarters as well. While demand for Volume Servers will increase beyond the metros, the need for scale will continue to create demand for High-end and Mid-range servers as well.”

IDC’s Server Taxonomy
IDC’s Worldwide Server Taxonomy maps the eleven price bands within the server market into three price ranges: volume servers (servers priced less than US$ 25,000), midrange enterprise servers (US$ 25,000 to US$ 49,999) and high-end enterprise servers (US$ 50,000 or more). The revenue data presented in this release is stated as factory revenue to determine the market-share position. Factory revenue represents those dollars recognized by multi-user system and server vendors for ISS (initial server shipments) and upgrade units sold through direct and indirect channels and includes the following embedded server components: Frame or cabinets and all cables, processors, memory, communication boards, operating system software, other bundled software and initial internal and external storage disk shipments.

*Conversion Rate, 2Q 2007: 1 US$ = INR 41.31082