Indian IT Storage Market Sees Sluggish Growth
The IT storage market in India hits a new low this quarter, according to a research report by International Data Corporation (IDC) that sees the India Storage market growing at a double-digit Q-o-Q de-growth (in revenue) and stood at $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, said IDC.
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.
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, it said.
Finance, manufacturing and communication and media, the key verticals for the last few quarters remained sluggish this period, according to the report. 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.
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.
According to Dileep Nadimpalli, Senior Market Analyst, Storage, Business favouring policies are expected from the recently elected government. The impact of the positive sentiments is already visible and growth is expected in the next few years. In addition, the SMB market in India is expected to grow faster than previous years.”
Gaurav Sharma, Research Manager, Enterprise, IDC India, says, “A stable government, dipping dollar spends/GB cost, adoption and expansion of the 3rd 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.”
EMC continued to lead the market with an overall share of 33% whereas NetApp displaced IBM this quarter with a 16% market share followed by HP and IBM with a share of 12% and 11% respectively.
IBM saw a significant decline this quarter and dropped two positions from second to fourth spot. Dell registered an impressive growth mainly due to its change in strategy and investments in channels. Overall, the Top four Vendors maintained their dominant position.
Storage market is expected to surge ahead due to a combination of positive sentiments, stable government, advancements in technology and announcements in the budget towards smart cities and development projects that will indirectly drive demand for storage.
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