India’s External Storage Market Stood At $ 74.6 Mn in Q1 2017: IDC

by CXOtoday News Desk    Jul 06, 2017

external storage

India’s external storage market witnessed a growth of 13.8 percent year on year(YoY) (in vendor Revenue) and stood at $ 74.6 million in Q1 2017, according to IDC. Multimillion-dollar deal in telecommunication vertical drove the growth in the external storage market. Banking, telecom, professional services, manufacturing and government continued to be the key contributors in Q1 2017. In addition to the major verticals, significant growth is witnessed in verticals such as Securities, Transportation and Insurance during this period, it said.

“External Storage is getting very dynamic to address new age demands from emerging technologies such as real-time business analytics, Internet of Things, augmented reality, robotics, etc. Flash storage, Hyper-converged infrastructure and Software-defined storage technologies are getting more relevant across organizations like never before,” said, Dileep Nadimpalli, Associate Research Manager, Enterprise Infrastructure.

High-end storage segment witnessed a strong YoY growth in Q1 2017 due to large deployments from telecommunications, banking and government verticals. Entry-level storage saw a marginal growth while mid-range external storage saw a marginal YoY decline in market share during Q1 2017, noted the study.

Witnessed significant uptake of All flash Arrays (AFA) among telecom, BFSI, IT/ITeS, government and manufacturing units in Q1 2017. Acceptance of AFA is increased as it offers better performance at an affordable price. Also, it witnessed increased acceptance of Hybrid Flash arrays (HFA) as this offers both capacity and performance with a single array.

Modernize IT infrastructure and reduce infrastructure footprint are the key IT priorities across organizations. Technologies such as Hyper-converged infrastructure and Software-defined Storage are gaining traction to address both optimization demands and remove infrastructure management complexities.

“Implementation of GST is expected to have a negative impact on enterprise IT for the next 2 quarters. In long term, external Storage will be impacted by growth in internal and ODM storage. Primarily driven by technology trends, like SDS and HCI, and wider acceptance of public cloud. In this challenging environment taking a solutions-centric approach, rather than a product-centric approach, with the right technology partnerships will help external storage suppliers stay ahead in their game,” said, Sharyathi Nagesh , Senior Research Manager, Enterprise Infrastructure. 

Dell Inc continued to lead the market with market share of 43.4% followed by HPE in Q1 2017. IBM and Netapp witnessed a significant YoY growth due to uptake from banking, telecom and government verticals in Q1 2017.