Banking and Telcos boosting Growth of India External Storage Systems Market, says IDC
According to the IDC's latest Asia/Pacific Quarterly Enterprise Storage Systems Tracker, India's external storage market has witnessed a growth of 8.6 per cent year-on-year (YoY) (in vendor revenue) and stood at $70.0 million in Q2 2017.
"The rapid explosion of the digital data clearly poses organizations to a variety of challenges which can be converted into significant opportunity. The challenge is to manage huge data volumes with right set of storage technologies to derive meaningful information for better decision making," said Dileep Nadimpalli, Associate Research Manager, Enterprise Infrastructure, IDC India. "Information transformation is the core pillar of digital transformation journey to unlock the monetary aspects by generating new revenue streams," added Nadimpalli.
As per the report, significant spending from banking and telecommunication verticals drove incremental growth in the external storage market. Banking, professional services, telecommunications, manufacturing and government continue to be the key contributors in Q2 2017. Increased acceptances of third platform technologies are pushing organizations to deploy new-age storage solutions to address dynamic storage demands.
It said, increased uptake of All Flash Arrays (AFA), Hyperconverged infrastructure and Software-defined Storage are the key technology trends witnessed in the market. In addition, all the global cloud providers and third-party data-center players are investing heavily to tap the increased uptake of cloud solutions.
Commenting on this, Sharyathi Nagesh, Senior Research Manager, Enterprise Infrastructure, IDC India, said, "Overall enterprise storage market is seeing a significant shift in customer spending. Over the years, the external storage market is seeing moderate growth, while ODM and internal storage markets are witnessing unprecedented growth YoY.”
He further added, “This is indicative of the growth potential available in cloud and SDDC markets. These growth drivers will eventually impact the traditional external storage market as well: entry level storage customer will see cloud as a compelling value proposition, midrange customers will see HCI as a compelling story while high end storage will see increasing competition from midrange AFA storage. Storage vendors need to be cognisant of this market shift as this will impact their existing business models."
Major Vendors Analysis by IDC:
HPE displaced Dell Inc and emerged as market leader with a 32.4-per cent market share in Q2 2017. Large deals from Banking and telecommunications drove the growth for HPE. IBM and Dell Inc witnessed a double-digit YoY decline, while HPE and NetApp saw a high double-digit YoY growth in Q2 2017.
IDC India Forecast
The external enterprise storage systems market is expected to grow in single digit in terms of compound annual growth rate (CAGR) for 2016 – 2021 time-period. Increased external storage spending is expected from banking and government sectors in the coming quarters. Emergence of SMAC technologies, IoT, machine learning, artificial intelligence, big data, etc across verticals would raise demand for new storage technologies in the near future.
Tags: Banking, Telcos, Growth of India External Storage Systems Market, IDC, India's external storage market, Dileep Nadimpalli idc india, Major Vendors Analysis, IDC India Forecast, varindia
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