External Storage Market in India Valued at $82 million in 3Q18, Up 23% Y/Y – IDC

As per IDC‘s AsiaPac Quarterly Enterprise Storage Systems Tracker Q3 2018 release, India’s external storage market witnessed a growth of 23.1% Y/Y (by vendor revenue) and stood at $81.8 million in 3Q18.

Increased storage spending from professional services organizations drove the incremental growth in 3Q18. Professional services, banking, manufacturing, telecommunications and government industries contributed close to 82% of overall external storage market in 3Q18.

“Infrastructure modernization to improve agility and scalability is of high importance for today’s organizations. This trend is compelling organizations to deploy/consider new age storage solutions,” says Dileep Nadimpalli, research manager, enterprise infrastructure, IDC India.

Organizational demand for high performance and low latency storage solutions led to a triple digit Y/Y growth of AFAs in 3Q18. Majority of the vendors started offering NVMe-based flash arrays to drive an incremental growth in the coming quarters.

Mid-range external storage segment saw an exponential Y/Y growth and continued to lead the market constituting more than 66.9% of the total 3Q18 external storage market, while both entry-level and high-end storage segments declined Y/Y in 3Q18.

“The storage scene in India is seeing growth and leading the information transformation. Majority of the OEMs are focusing on new technologies and innovative pricing models to ensure traditional external storage consumption in the market in the wake of increasing acceptance of cloud storage solutions across organizations,” says Ranganath Sadasiva, director, enterprise solutions, IDC India.

India Enterprise Storage Systems Market Share in 3Q18
(by vendor revenue)

Dell Inc. continued to be the market leader with a 30.3% market share by vendor revenue, followed by Hewlett Packard Enterprise with 18.0% market share in 3Q18.

Smaller external storage OEMs witnessed a significant Y/Y growth due to large multi-million-dollar deals from professional services organizations in 3Q18.

Forecast
The external enterprise storage systems market in India is expected to grow at a single digit CAGR for the 2017-2022 time-period. Increased spending on digital transformation initiatives across industries would drive incremental revenues in the coming quarters.

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