According to IDC Asia/Pacific Quarterly Enterprise Storage Tracker Government spending is expected to increase significantly due to recent initiatives on Digital India and Smart cities.
Also various state and central government departments are expected to invest on storage infrastructure in the coming quarters. Large technology refresh/upgrade deals in Banking and Telecom verticals are expected to drive storage demand in the future.
The report further adds that India External storage market witnessed a significant year-on-year growth (in vendor revenue) and stood at 73.9 million USD in Q3 2015.
Communications & Media and Banking verticals’ investments in storage technology refreshes resulted in strong growth numbers for Q3 2015. Digital transformation projects across verticals witnessed huge uptake and are also expected to contribute further in the near future.
Adoption and acceptance of Hybrid Flash arrays (HFA) across organizations to meet both capacity and performance demands in a single box, is on the rise as a use case. Adoption of All Flash arrays has also gained momentum across organizations for workloads like OLTP, BI, Billing and VDI.
Optimization and productivity enhancement remain the key business priorities across organizations. Adoption of technologies like software defined storage and virtualization are getting increased acceptance to achieve these priorities.
According to Dileep Nadimpalli, Senior Market Analyst, Storage, IDC India, “Growing volume of data is seen across verticals due to increased adoption of third platform technologies, BC/DR, surveillance and digital transformation are driving storage demand. Small storage vendors are gaining increased acceptance as they promise better capacity/performance with competitive prices.”
Gaurav Sharma, Research Manager- Enterprise & IPDS says, “The increasing adoption and acceptance of Flash storage on the back of dipping Dollar per GB and expansion of 3rd platform is expected to continue. With organizations now realizing the benefits of flash, it’s now a question of where and how rather than whether they need flash.”
Major Vendors Analysis
EMC continued to lead the market but saw a decline in terms of market share to 29 percent from 32 percent in Q3 2015. IBM grew exponentially majorly due to multi-million dollar deals from Telecom vertical. Dell saw an impressive growth mainly due to its change in strategy and investments in channel community.
IDC India Forecast
The external enterprise storage systems market is expected to grow in single digit in terms of compound annual growth rate (CAGR) for 2014–2019. Major investments are expected from Banking, Communication & Media, Government and Manufacturing verticals due to technology refresh, surveillance, digital transformation and IoT workloads.