According to IDC's Asia/Pacific Quarterly Enterprise Server Tracker, fourth quarter 2007, March 2008 release, the overall India Server market has witnessed healthy growth as customers continued to expand their IT infrastructure. During calendar year 2007 the overall India server market factory revenue grew by 24 percent over calendar year 2006 to touch US$727 million and unit shipments grew by 19 percent to 135,615 units during the same period. Apart from traditional sectors like telecom, BFSI and manufacturing, 2007 also saw the emergence of retail and construction as key demand drivers.

During 2007, factory revenues of the India x86 Server market grew by 24 percent over 2006 to touch $414 million, while unit shipments grew by 21 percent to 126,940 units during the same period. HP emerged as the market leader in the India x86 Server market with 33 percent share during 2007, both in terms of factory revenue as well as unit shipments.

According to Amit Dalal, Analyst, Enterprise Computing Products Research, IDC India, "The blade server market continued to be the hot segment for x86 servers during 2007. The market was abuzz with initiatives like ramping up of product portfolios and education of customers through events and contact programmes. These programmes demonstrated product benefit themes like hot swapping, reducing redundancy and reduction in cabling, power and space requirements." In 2007 the India x86 blade server market recorded a growth of 103 percent over 2006 with 12,146 units shipped. HP dominated the India x86 blade server market with 64 percent of total x86 blade server shipments in 2007, followed by IBM with a 28 percent share.

Factory revenues of the India non-x86 Server market also grew by 24 percent year-on-year to touch $313 million in 2007. IBM emerged as market leader in the India non-x86 Server market with a 38% percent share in 2007 in terms of factory revenue. The India non-x86 Server market was driven by the expansion plans of major telecommunication service providers and customers in the BFSI sector. This helped the India non-x86 Server market to cross the $100 million mark for the first time in a single quarter during 4Q 2007 (October-December 2007).