News

Storage market witnessed Double-digit growth

Refresh Deals and government backed initiatives drive the Storage Demand in Q1 2015

According to International Data Corporation (IDC), external storage market witnessed a double-digit year-on-year growth (in vendor revenue) and stood at USD 70.2 million in Q1 CY 2015

The growth is majorly driven by government initiatives (like UID and e-governance) 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.

Market is witnessing increased deployments of hybrid-flash arrays as it caters to the needs of today’s organizations with both capacity and performance embedded in a single system. SMBs are increasingly looking at deploying SaaS services which is expected to cannibalize the traditional storage system business by some magnitude in the coming quarters.

Communications & Media, Banking and Professional Services continue to be the dominant verticals, while Government segment sees increased spending. Manufacturing vertical saw a decline as compared to Q4 2014 but is expected to bounce back in the coming quarters.

According to Dileep Nadimpalli, Senior Market Analyst, Storage, IDC India “Organizations are demanding innovative solutions with business outcome led pricing, which can integrate, process and analyse the large volumes of existing data to give them actionable recommendations.”

Gaurav Sharma, Research Manager, Enterprise Computing, IDC India says, “New business models and renewed competition is forcing organizations of all sizes to revisit their business strategy, storage architectures to accommodate more efficient technologies, hybrid arrays and storage management tools to be able to support this transition. A key component of this is the structured and unstructured data that needs to be analysed across departments to contribute to this strategy, marketing programs, product positioning and customer delight.”

As per the analysis of major vendors, EMC continued to lead the market and increased its share to 33.5% from 31.2% majorly due to multi-million dollar deals from Government and Telecom vertical.

IDC India Forecast says that external enterprise storage systems market is expected to recover after considerable de-growth in CY 2014. Recent government initiatives like Make in India and Digitization coupled with state level initiatives would drive the storage demand further, both directly and indirectly. In addition, refresh deals across verticals, especially in Banking and Telecom verticals are also expected in the coming quarters.

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