With Decreased Demand Majorly from Telco, Media & Govt Verticals
New Delhi, NFAPost: As per International Data Corporation’s (IDC) latest Worldwide Quarterly Enterprise Storage Systems Tracker Q1 2021 release, India’s external storage market witnessed a decline of 6.0% year-over-year (YoY) by vendor revenue and stood at USD 83.0 million in Q1 2021 (Jan-Mar).
Witnessed YoY growth in storage spending from BFSI, professional services, and manufacturing verticals, while saw a sharp decline in telecommunications, media, and government verticals in Q1 2021.
IDC India Research Manager, Enterprise Infrastructure Dileep Nadimpalli said the pandemic has accelerated the digital transformation initiatives but to drive successful transformation organizations need to modernize their applications/infrastructure.
“Also there is a need to provide seamless access to data; continuous optimisation, and next-generation security all with ease of management and at a reduced cost. Enterprises are in search of intelligent infrastructure platform which can enable them in their transformation journey,” says Dileep Nadimpalli.
Adoption of All-Flash Arrays (AFA) is evident, contributing 40.5% to the overall external storage systems market in Q1 2021. Increased uptake of AFA specifically from banking organizations contributed to YoY growth in Q1 2021. We expect this market to grow further as a majority of the enterprises are preferring only AFA for all their primary workloads.
Entry-Level storage systems grew by 11.5% YoY due to increased investments from banking, government, and manufacturing organizations in Q1 2021. Midrange and High-end storage segments witnessed a YoY decline but expecting strong uptake of these storage segments in the near future.
Dell Technologies continued to be the market leader in the external storage systems market with a 27.0% market share by vendor revenue, followed by HPE and NetApp. Both HPE and NetApp have witnessed significant YoY growth in 1Q 2021.
The external storage systems market is expected to grow at a single-digit compounded annual growth rate (CAGR) for the 2020 – 2025 period. IDC forecasts that External Storage Systems spending is expected to grow YoY significantly in CY 2021 due to uptake from government, BFSI, and telecommunication verticals.
