Indian SMB server market to exceed $500 mn by 2017

by CXOtoday News Desk    Sep 25, 2013


The Indian SMB server market is presently growing at a healthy rate of 12%, according to a soon to be published study by AMI Partners. The study highlights that organizations having less than 1000 employees are playing a significant role in driving the all-India server demand. The current India SMB server market amounts to approximately $300M and is expected to grow to over $500 million by 2017.

According to the report, Indian SMBs in the manufacturing and IT/ITeS sectors continue to be on the watch list of major server vendors. The researchers believe, verticals such as manufacturing are looking for automation and increasing productivity across the entire value chain. Applications such as CRM and ERP are also being adopted by these entities. In the face of the global slowdown, the focus is now increasingly on optimum resource utilization. Consequently, the need for automation and productivity enhancements has further increased their IT needs.

Within India SMBs, the technology adoption pattern is diverse. “Smaller SMBs are generally laggards in terms of technology adoption. They are in the process of setting up their IT infrastructure and are still dependent on basic IT components. They utilize servers for basic tasks such as file/print sharing and email. On the other hand, larger SMBs are early technology adopters. They have their basic IT infrastructure in place and are moving or have already moved to a higher IT platform. These organizations are now in the consolidation mode. They utilize servers for advanced line of business applications such as CRM, ERP and analytics. Furthermore, these businesses have gradually started adopting virtualization,” says Pratik Gupta, Associate at AMI-Partners India.

He explains that even among SMBs, the smaller companies often do not have a formal IT team in place. Many of their IT purchases and decisions are ad-hoc in nature. For information pertaining to IT and the eventual purchase, these SMBs rely heavily on peer group discussions and online searches. With the advent of social media, there is a vast amount of information available online through a host of interactive platforms such as blogs and review platforms. “However, the role of channel partners, who act as the last mile in the distribution chain, has not experienced a decline. In fact, they play a crucial role in the decision making process of smaller SMBs,” adds Gupta.

The study observed that vendors are focusing on ensuring partner efficiency through regular partner programs for the SMB segment. Continuous training and certification programs are being actively used by vendors to ensure partner efficiency and capability. The focus is on training the partners for basic box servers as well as high-end servers and emerging technologies such as cloud computing and virtualization. These programs are aimed at both the partners’ technical and the sales teams. Now, the focus for vendors is clearly on engaging with customers in a more collaborative manner.