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HP expects revival in server sales from second quarter

Our Bureau

Bangalore, June 2 After a muted 2008, Hewlett-Packard Co expects server sales in India to show signs of improvement in the second quarter of this year.

Sectors such as telecom, government and healthcare are expected to drive growth, Mr Rajesh Dhar, Director, Industry Standard Servers, HP India Sales, said. The manufacturing sector is expected to gain momentum in the third or the fourth quarter.

The global economic downturn forced companies to put a freeze on investment plans and this impacted hardware sales, including PCs and servers.

Govt orders

HP has pitched for orders from the government for e-governance, power sector, State government data centres and education projects, which are all in the tendering stage, Mr Dhar said.

He said the telecom service providers are adding consumers and the expected roll-out of 3G services would see newer value-added services being introduced, all of which will need a strong IT infrastructure. There are deals from airport modernisation projects as well, he added.

Mr Dhar said HP sees good opportunity not only in server sales but also in services such as consolidation or virtualisation.

The Indian market has matured from just buying IT to using IT more optimally. Companies look at IT investments very strategically and a lot of optimisation will happen, he added.

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