India's Server revenue market up 30%: Gartner

Gartner on Tuesday announced that India has achieved a 30 per cent growth in revenue terms for the server market during the first half of 2005.

According to the analysts' firm, India is the largest server market in the ASEAN region and its healthy economic conditions were reflected in increasing business confidence and foreign investment during the second quarter.

Server demand was strongest in banking, finance, manufacturing and services, with the public sector also active, Gartner highlighted.

The research firm has added that Asia/Pacific server revenue in the first half of 2005 grew 12.9 per cent compared to the first half of 2004.

In the second quarter alone, the growth of server revenue was reported at 15.8 per cent year over year.

"China, Korea and Australia continue to be the largest server markets in terms of revenue," said Annie Chung, principal analyst of enterprise systems at Gartner. "Together, they contributed 67 per cent of total Asia/Pacific server revenue in this second quarter."

Chung said the telecommunications, government and education sectors led market growth in China.

Server revenue grew 22.1 per cent to $601 million as China continued to enjoy strong increases in gross domestic product (GDP). Rising oil prices and the revaluation of RMB had minimal impact on IT spending in the quarter.

South Korea was second to China in Asia/Pacific, with 14.9 per cent market share. Revenue growth in the quarter was 5.5 per cent compared to the same quarter last year.

"While there are some downsizing issues in the high-end market, demand from manufacturers and small-and medium-sized enterprises (SMEs) is contributing to healthy growth for the x86-platform," Chung said.

"The government also is expected to contribute to an increase in server demand as it is embarking on an e-government initiative."

In Australia, server revenue grew 13.3 per cent in the second quarter year on year, with strong demand in the enterprise market and government, as well as in the manufacturing, energy and education sectors.