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BFSI and Govt. sectors trigger external storage market growth in Q4 2016: IDC India

 According to International Data Corporation’s (IDC) Asia/Pacific Quarterly Enterprise Storage Tracker, India external storage market witnessed a growth of 17.5 percent quarter on quarter (in vendor Revenue) and stood at $ 77.8 million in Q4 2016.

Banking, professional services, manufacturing and Government continued to be the key contributors in Q4 2016. Large banking refresh deals drove the storage market and expecting increased spending from banking on analytics and UPI platforms in the coming quarters. In addition to the major verticals, significant growth is witnessed in verticals such as Securities, Transportation, Education and Insurance which drove incremental storage revenues in Q4 2016.

Midrange external storage segment continued to lead the market with more than 50% market share in Q4 2016. Increased market acceptance of new technologies such as hyper converged infrastructure might cannibalize traditional mid-range storage business in the near future. High-end storage segment witnessed a significant quarter on quarter growth as compared to other segments in Q4 2016 due to large refresh deals from banking and telecom verticals.

Witnessed significant year on year growth of All Flash Arrays (AFA) due to uptake from banking, IT/ITeS and manufacturing verticals in Q4 2016. Organizations are willing to pay a little extra to avail best in class performance, so opting flash storage technologies like never before.

With the increased acceptance of SMAC technologies across organizations, storage demands from end-customers are changing to accommodate these new age workloads. Increasing demand for cloud storage as a service is clearly visible in the market. This trend would drive additional storage demand from 3rd party datacenter players and cloud providers however these players started considering component manufactures or white-box players.

According to Dileep Nadimpalli, Associate Research Manager, Enterprise Infrastructure says, “Organizations are demanding for faster time to market but IT departments are loaded with growing infrastructure management complexities. Organizations started preferring hyper converged solutions to address the management complexities and to have a competitive edge.”

Sharyathi Nagesh, Senior Research Manager, Enterprise Infrastructure says, “Storage market will continue seeing significant pricing pressure in $/Terabytes. Overall storage industry will continue to grow in capacity shipped. Both new and entrenched players are looking at price rationalization to drive growth and scale”.

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