China External Disk Storage Market Grew 43% From 2Q07 to 2Q08

According to CCID Consulting, a Chinese consulting firm, China’s external disk storage market of Q2 2008 grew 43% thanks to enterprise data’s growing and integration of applications.

Compared to the same period last year, Q2 2008 faced a tough economic environment which had negative impact on storage market worldwide. But thanks to the growing of enterprises’ data and the needs of application integration, virtualization and simple management, sales of China’s external disk storage systems market maintained a high rate of growth: 43%.

The market pattern changed a little. IBM rose to top spot of the market; HP acquired EYP boosting its next generation datacenter concept; EMC was still the one who grew fastest; NetApp showed promising prospect; Inspur launched products for video and audio application. Falling prices of Disk Array made more vendors provide whole solution instead of equipments to customers. Thus the turnover of this quarter increased 34.1%.

1. From a geographic perspective, due to the imbalance of regional economic, the main external disk storage systems market of 2008 Q2 is still in developed areas, such as North China, East China and South China.
2. From the point of view of vertical market structure, IBM and HP were leading actors of larger enterprises.
3. From the point of view of parallel market, many industries kept a rapid increase. The Beijing Olympic Game is a major driving force for storage growth in North China. The increasing telecommunications traffic and video surveillance made sustained demand.
4. Channel structure: In order to avoid trouble, users preferred choosing vendors who provide total solution. Therefore SI and value-added agent were the main distributors.