External Storage Market in India Up 13% Y/Y – IDC

As per IDC Corp.‘s latest AsiaPac Quarterly Enterprise Storage Systems Tracker Q1 2018 release, India’s external storage market witnessed a growth of 12.7% Y/Y (by vendor revenue) and stood at $84.1 million in 1Q18.

External storage market growth in 1Q18 was majorly driven by increased spending from banking organizations. Major Industry verticals such as banking, professional services, manufacturing, telecommunications and government together contributed to more than 80% of overall external storage market in 1Q18.

“Organizations are witnessing significant data growth and there are challenges for getting IT budgets for traditional hardware. Organizations are considering technologies to help data optimization and consolidation as ways to overcome this difficulty“, says Dileep Nadimpalli, research manager, enterprise infrastructure, IDC India.

All flash arrays (AFA) segment saw a significant growth of 87.4% Y/Y in 1Q18 contributing to 30.9% of the overall external storage market. Adoption of AFAs offers better technical advance and performance at an affordable price which is benefiting customer due to competitive vendor environment. Organizations are actively considering flash options and are willing to pay the additional price premium to avail best in class performance.

Mid-range storage segment witnessed a significant growth Y/Y due to large banking and professional services deployments while entry-level storage segment saw a decline in 1Q18. Midrange external storage segment continued to lead the market with more than 58% market share in 1Q18.

“Budgetary pressures and dynamic business priorities are pushing organizations to consider new deployment models to procure infrastructure. To address these changing customer requirements, OEMs should focus on innovative pricing models to drive new and incremental business. With unabated data growth, highly available data and instant information delivery is what matter to business,” says Ranganath Sadasiva, director, enterprise solution, IDC India.

Major Vendors Analysis

Dell Inc. continued to be the market leader with a 29.7% market share by vendor revenue, however witnessed a Y/Y decline in 1Q18. Hewlett Packard Enterprise saw a significant growth predominantly driven by deals from banking and telecommunications industry.

IDC India Forecast
The external enterprise storage systems market is expected to grow at a single digit CAGR for 2017-2022 time period. This growth will be driven across industries and will be led by spend in 3rd platform technologies and digital transformation initiatives.

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