Bank, Telcos Drive India’s External Storage Market: IDC
Data-driven industries such as banking, telecom and government are driving India’s external storage market that contributed to more than 80% of overall external storage market in Q1 2018, according to IDC.
IDC predicts India’s external storage market witnessed a growth of 12.7%YoY (by vendor revenue) and stood at USD 84.1 million in Q1 2018 and the market is expected to grow at a single digit compounded annual growth rate (CAGR) for 2017-2022 time-period to be driven across industries and will be led by spend in third platform technologies and digital transformation initiatives.
“Organizations are witnessing significant data growth and there are challenges for getting IT budgets for traditional hardware. Organizations are considering technologies to help data optimization and consolidation as ways to overcome this difficulty,” said Dileep Nadimpalli, Research Manager, Enterprise Infrastructure, IDC India.
All flash arrays segment saw a significant growth of 87.4% YoY in Q1 2018 contributing to 30.9% of the overall external storage market. Adoption of All flash arrays (AFA) offers better technical advance and performance at an affordable price which is benefiting customer due to competitive vendor environment. Organizations are actively considering flash options and are willing to pay the additional price premium to avail best in class performance.
Mid-range storage segment witnessed a significant growth YoY due to large banking and professional services deployments while entry-level storage segment saw a decline in Q1 2018. Midrange external storage segment continued to lead the market with more than 58% market share in Q1 2018.
“Budgetary pressures and dynamic business priorities are pushing organizations to consider new deployment models to procure infrastructure. To address these changing customer requirements, OEMs should focus on innovative pricing models to drive new and incremental business. With unabated data growth, highly available data and instant information delivery is what matter to business,” said Ranganath Sadasiva, Director, Enterprise Solution, IDC India.
In terms of vendor ranking, Dell Inc continued to be the market leader with a 29.7% market share by vendor revenue, however witnessed a YoY decline in Q1 2018. Hewlett Packard Enterprise saw a significant growth predominantly driven by deals from banking and telecommunications industry, said IDC