Dell’s $67-bn EMC takeover to help its India plans

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Bangalore | October 13, 2015 12:31 AM

Dell’s decision to acquire EMC for $67 billion, in the biggest ever deal in the tech sector, will help the former’s fortunes in a big way in India.

Dell’s decision to acquire EMC for $67 billion, in the biggest ever deal in the tech sector, will help the former’s fortunes in a big way in India.

EMC currently holds the number one position in the India storage market with a 33.5% market share in the first quarter of 2015, according to IDC India. In contrast Dell held the sixth position.

In a highly competitive market, EMC has consistently held the number one position mostly due to multi-million dollar deals from government and telecom verticals. According to the IDC Asia/Pacific Quarterly Enterprise Storage Tracker India, the external storage market witnessed a double-digit year-on-year growth in vendor revenue in the first quarter of 2015 and stood at $70.2 million.

According to the IDC note, HP has displaced IBM to gain the second spot with 15% market share in Indian in Q1 2015. IBM and Netapp saw negative growth while HDS and Dell witnessed marginal growth on a quarter-on-quarter.

Growth in the storage market in India has been largely driven by government initiatives (like UID) and large multi-million dollar technology refresh deals in the banking vertical. The market is expected to witness further growth due to increased storage demand from e-commerce companies, healthcare, and online educational institutes coupled with the traditional verticals, in the coming quarters.

Besides, the strength in the storage market, the coming together of the two technology giants is also likely to boost the R&D presence in India. Both companies have built deep technical expertise in India with large teams along with the ability to develop sophisticated solutions.

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