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Slow movement of deals leads to ‘de-growth’ of the external storage market

According to IDC’s Asia/Pacific (excluding Japan) “Quarterly Enterprise Storage Tracker, Q2 2014” India’s external storage market saw a double digit year-on-year de-growth (in vendor revenue) and stood at US$54.4 million, the lowest market has reached since the second quarter of 2012 (Q2 2012).

However terabytes sold in Q2 2014  saw a double digit year-on-year growth due to decrease in dollar per gigabyte and is allowing the terabyte sold to grow irrespective of the revenue de-growth, says IDC. Q2 2014 witnessed a declining trend majorly due to slow movement of deals and vendor’s focus on technologies like compression and de-duplication that is making the traditional storage  more efficient, notes the research group.

The market is expected to revive in the coming quarters due to the positive business sentiment, investment announcements from the government and rising demand from the SMB segment particularly. Growing volume of data is pushing organizations to revisit their storage strategies as they optimize their storage infrastructure with technologies like virtualization, de-duplication, automatic tiering, compression and thin provisioning, going forward, according to IDC.

Increased acceptability of flash technology in the market is visible due to recent advancements that have made them more affordable with better I/O speeds. The number of flash deals are increasing every quarter and acceptability and adoption of flash would increase as economies of scale come into the picture, according to IDC.

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