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June 26, 1999

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Sleepy Joe: India's server market growth is terribly lagging in the Asia-Pacific region. Server sales rose by 26 per cent in the Asia-Pacific region, excluding Japan. But India did poorly with only a 4 per cent improvement.

These are the figures from preliminary data released by International Data Corporation.

Email this story to a friend. Not only has India's poor show retarded the overall figure for the Asia-Pacific region, it has also brought down its share of sales revenue from 6.7 per cent in Q1 1998 to 5.5 per cent in Q1 1999.

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However, in terms of value, revenues from server sales in India increased to Rs 2.33 billion ($54.85 million) from Rs 2.24 billion ($52 million), the IDC report said.

Server procurement in Asia-Pacific was primarily aided by the region's recovery from over a year of turmoil and social, political and economic conditions improved.

Throughout the region, government and corporate spending surged due to a more positive economic outlook. Sales of low-end and midrange servers were particularly strong in the first quarter when compared to the period in the previous year.

Momentum for servers based on Windows NT continued in Q1, but demand for Unix servers proved resilient as end-users continued to find comfort in the security and stability of the Unix operating system.

Although Y2K uncertainty is expected to subdue some server spending in the second half of the year, the economic recovery is forecasted to offset Y2K apprehension and lead to continued server market growth in the region, the IDC report said.

UNI

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