As Action Moves To Cloud, Server Sales Take A Hit

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Server sales in India declined for the first time due to weak demand from IT services firms, whose clients are increasingly renting space on the cloud to host applications instead of setting up their own infrastructure.

Analysts said there were examples of organisations not renewing server deals since they had adequate empty storage space with movement of applications to the cloud.

“There is still a large market, but it is seeing slow growth,” said Sanchit Vir Gogia, chief executive of Greyhound Research. “A lot of these hardware setups were installed five years ago or so, but as more deals are coming up for renewal, they are not renewing those contracts since a large portion of applications moved to cloud”.

As more businesses see “adequate” empty server infrastructure after migration to the cloud, they have enough existing facility to accommodate new operations. This is reducing the number of renewals for server solution providers, he said.

[Economic Times]


Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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