- Increased investments from banking and state government, as per IDC, entities was a big reason behind the growth of external storage market
- Dell grabbed the highest market share during 4Q19
As per International Data Corporation’s (IDC) latest Worldwide Quarterly Enterprise Storage Systems Tracker 4Q19 release, India’s external storage market witnessed a growth of six per cent Year-over-Year (YoY) by vendor revenue and stood at $91.0 million in 4Q19. Banking, professional services, government, manufacturing, and telecommunications industries contributed 81.2 per cent to the overall external storage market in 4Q19.
“India witnessed back to back strong growth rates for the last couple of years, but COVID-19 outbreak would act as a major barrier for storage market growth in CY 2020. COVID-19 would have a negative impact on verticals such as manufacturing, transportation, construction, personal and consumer services, etc. However, we can expect positive growth from healthcare, insurance and telecommunications verticals,” says Dileep Nadimpalli, research manager, Enterprise Infrastructure, IDC India.
The trend of consumption-based pricing is picking up pace
All-Flash Arrays (AFA) witnessed a growth of 6.1 per cent YoY, which contributed 28.8 per cent to the overall external storage systems market in 4Q19. The advent of real-time applications, which need high performance with minimal latency, as per the report, is expected to drive the growth for All-Flash Arrays (AFA) in the near future.
Midrange storage systems grew by 13.5 per cent YoY due to increased investments from Banking and Government organizations in 4Q19. The entry storage segment witnessed degrowth of 12.6 per cent YoY growth, while the high-end storage segment saw marginal growth in 4Q19.
“As a growing requirement in the digital economy, organisations are opting for automation technologies, which are self-healing even at the infrastructure layer and consumption-based pricing to lower their CAPEX and to avoid unwanted over-provisioning of infrastructure. To address these needs, some of the major vendors are embedding machine learning/deep learning to infrastructure and have started offering consumption-based pricing,” read the report.
IoT, AI, Big Data accelerators
Dell Technologies continued to be the market leader with a 25.6 per cent market share by vendor revenue, followed by Hewlett Packard Enterprise with a 14.9 per cent market share in 4Q19. Dell Technologies witnessed a marginal YoY growth, while all other major vendors saw a decline in terms of YoY market share in 4Q19.
“The external enterprise storage systems market is expected to grow at a single-digit compounded annual growth rate (CAGR) for the 2019 to 2024 time period. Large technology refresh projects along with multiple digital transformation initiatives and incorporation of emerging third platform technologies and innovation accelerators such as IoT, AI, Big Data, etc. across organizations would drive storage demand in the near future,” read the report.