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Issues of Competition in the Indian Server Market

Very little is known about the extent and nature of competition in the high-end server and associated services market in India. This study analyses competition and related issues in the Indian server market, with an extensive focus on the high-end, especially mainframe computing. Since structural indicators of competition do not always reflect or imply abuse, firm conduct is gauged from an extensive primary survey of users and vendors. The study finds that while competition in the high-end server market has developed, it also cautions that expansion in the future installed base of such high-end systems could warrant a closer look by the Competition Commission of India into the potential welfare implications arising from vendor lock-in.

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Issues of Competition in the Indian Server Market

Rajat Kathuria, Subhasis Bera

Very little is known about the extent and nature of competition in the high-end server and associated services market in India. This study analyses competition and related issues in the Indian server market, with an extensive focus on the high-end, especially mainframe computing. Since structural indicators of competition do not always reflect or imply abuse, firm conduct is gauged from an extensive primary survey of users and vendors. The study finds that while competition in the high-end server market has developed, it also cautions that expansion in the future installed base of such high-end systems could warrant a closer look by the Competition Commission of India into the potential welfare implications arising from vendor lock-in.

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