India’s external storage market witnessed a de-growth of 5.9 percent year on year (in vendor revenue) and stood at US$64.4 million in Q2 2016, according International Data Corporation’s (IDC) Asia/Pacific Quarterly Enterprise Storage Tracker.
Midrange storage segment continued with the trend of year-on-year growth while entry level and high-end storage systems declined year on year in Q2 2016.
Availability of enterprise class features in midrange storage systems is propelling the growth for midrange storage arrays. Also due to increased cloud adoption, the entry level storage market from SMB units is getting shifted to third party datacenters.
However, third party datacenters are preferring midrange storage over entry level systems to serve the SMB customers as well due to increased capacities and features.
Storage market was driven by banking and professional services in Q2 2016 while telecommunication vertical witnessed a sharp decline but this market is expected to grow in 2017 due to expansion projects pertaining to 4G rollouts.
Large banking refresh deals drove the market in Q2 2016 and expecting the same to continue in H2 2016.
The adoption of cloud storage/cloud back-up/DR as a service, etc. are adversely impacting the traditional storage business. This trend has created a new buyer segment – third party datacenters that is expected to grow. Third party datacenter organizations have a better negotiation power than SMB units and hence a significant price based competition is due in future.
Across verticals, organizations witnessed an uptake of All Flash arrays and Hybrid Flash arrays (HFA). All Flash arrays have gained momentum for workloads like OLTP (online transaction processing), Business Intelligence, Billing, Virtual desktop infrastructure, Database etc. The demand for both capacity and performance with a single box is addressed by Hybrid Flash arrays.
Increased demand for optimization technologies like virtualization, de-duplication, automatic tiering, compression and thin provisioning across organizations is being seen. There are several Proof of Concepts running around software defined storage and hyper converged infrastructure as well. This clearly indicates the demand for new optimization technologies in the market.