SMB to lead server demand in India

By Vivian Yeo, ZDNet Asia
Friday, June 13, 2008 06:57 PM

Indian small and midsize businesses (SMBs) are set to spend 20 percent more on servers over the next 12 months, according to a new report from Access Markets International Partners (AMI-Partners).

In a statement sent late Thursday, AMI-Partners said the number of servers shipped to SMBs in the coming year will grow 15 percent, driven primarily by the expansion of new distributed computing workload deployments.

"Server technology is constantly evolving to keep pace with ever-changing business requirements and expansion needs of the SMBs," said Partha Sarathi Sengupta, AMI-Partner's manager for strategic market analysis. "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."

Entry-level servers, in particular, have a huge market in small businesses, defined as companies with less than 100 employees, said AMI-Partners. Medium-sized businesses, which have between 100 and 999 employees, typically look for servers that can perform multi-level complex tasks.

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

Sengupta added: "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 [visible] on x86 servers."


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