India Server Revenue up 31% in Q2

The Indian server market revenue has registered a growth rate of 31% over
last year. The revenue increased from $74.9 mn in the second quarter of 2004 to
$98.3 mn in the second quarter of 2003. Increased business from small and medium
businesses contributed healthily to overall revenue, apart from the consistent
run-rate business.

Asia/Pacific (excluding Japan) server revenue totaled $1.37 bn in the second
quarter of 2004, a 12.4% increase from the same period last year, according to
Gartner, Inc.

Gartner's
VP for hardware and systems in Asia Pacific Matthew Boon commented, "The
second quarter of 2004 followed on the growth trajectory enjoyed in the opening
first quarter in Asia Pacific." He further noted, "There were a number
of factors which contributed to this annual growth record such as the intense
competition and price sensitivity in the region, as multinationals take on local
vendors in markets like China. This has allowed users to leverage such unique
conditions and increase purchases."

China continued to be the No. 1 country for server revenue in Asia/Pacific
followed by Korea and Australia. China grabbed 35% market share with annual
growth exceeding 23%.

From a vendor perspective, IBM garnered 37% market share to top the list
followed by Hewlett-Packard (HP) with 31% market share. Both vendors recorded
annual growth of 16% and 12% respectively. Sun Microsystems, on the other hand,
witnessed a revenue decline of four percent. Sun fared well in China and India
while its revenue declined in Australia, Korea and Singapore.

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