According to International Data Corporation (IDC), India Storage market saw a double-digit Q-o-Q de-growth (in revenue) and stood at US$56.8 million, the lowest the market has reached ever since Q2 2012. The decline in the TB sold in Q1 2014 was an exception to the TB growth trend dominating the Indian market for the last six quarters due to a combination of various reasons.
The declining trend was attributed to a combination of uncertainty around the political scenario and the market deferring its investments by a quarter. The economy too remained sluggish. Though positive sentiments seemed to have emerged in the wee hours of the closing quarter, it seems the market will have to wait for Q2 to ride that growth wave which is also marred by growing inflation, dollar depreciation and cautious approach.
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The market is expected to revive in the coming quarters as a stable government is now in place to drive some of these sentiments and in turn investments.
Finance, manufacturing and communication & media, the key verticals for the last few quarters, remained sluggish this period. In addition, enterprises across the board did not spend and held back their investments on refresh/upgrade due to the general election. This has resulted in cautious spending.
Gaurav Sharma, Research Manager, Enterprise, IDC India, said, "A stable government, dipping dollar spends/GB cost, adoption and expansion of the third platform and acceptance of technologies like flash will drive the growth. Additionally, customized solutions for SMBs and associated technologies like compression and de-duplication are also expected to play their part in raising investments in the coming quarters."
Growth is expected in Telecom and Government verticals as a combination of refresh investments in business outcome-led technologies and capacity requirements will work together to drive storage investments in the near future.
