External storage systems market in India falls 14.8% in September quarter: IDC1 min read . Updated: 23 Dec 2020, 03:39 PM IST
- IDC forecasts that external storage systems spending will continue to drop further in CY2020 due to delayed demand across organisations as a result of covid-19, however, it expects the market to recover in CY2021.
As more IT leaders in India weigh in favour of adopting cloud technologies to overcome the challenges of covid-19, spending on external storage systems is taking a hit.
India’s external storage market fell 14.8% to $ 79.9 million year-over-year (y-o-y) in terms of vendor revenue, in September quarter (Q3CY2020) due to decline in storage spending by professional services, government and manufacturing organisations, shows International Data Corporation's (IDC) latest worldwide quarterly enterprise storage systems tracker, released Wednesday.
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This is the third consecutive YoY decline in the external storage systems market in India in CY2020, IDC said.
IDC forecasts that external storage systems spending will continue to drop further in CY2020 due to delayed demand across organisations as a result of covid-19, however, it expects the market to recover in CY2021.
"Emergence of new-age applications, multi-cloud, edge deployments, etc. are forcing organisations to revisit their enterprise IT architecture," Dileep Nadimpalli, research Manager, Enterprise Infrastructure, IDC India said in a statement.
Nadimpalli points out, to adapt to this changing IT landscape, enterprises need intelligent, hyper agile, scalable, resilient, and cloud-ready data platforms which are flexible and easy to use.
Further, the report shows that all-flash arrays (storage infrastructure that includes only flash memory drives) was the key driver for the segment and accounted for 39.2% of the overall external storage systems market in the third quarter. Banking, telecommunications, and professional services were the key adopters of AFAs.
As companies were trying to cut costs, the focus was more on entry storage systems, resulting in a 3.4% YoY growth in the vertical. Most of the demand came from the insurance sector.
Spending on high-end and mid-range storage systems saw double-digit YoY decline during the third quarter.
US based Dell Technologies retained its position as the leader in the external storage systems market in India, accounting for 29% market vendor revenue, even though its market share declined YoY, as per IDC.
NetApp, also a US company, with 14.8% market share was the second leading vendor in the external storage space. NetApp's market share grew by almost 5% YoY.