NEW DELHI: The Indian external storage<\/a> market witnessed a decline of 20.6% Year-on-Year by vendor revenue in 1Q20 and stood at $87.8 million, market tracker firm IDC India<\/a> Tuesday said.
The market which was led by Dell Technologies<\/a> (31.4% share), followed by Hewlett Packard Enterprises<\/a> (15.9% share), witnessed a majority of YoY decline in professional services, manufacturing, and telecom companies in 1Q20.
On the other hand, Hitachi<\/a> and IBM<\/a> witnessed strong YoY growth in the same quarter due to crucial wins from government and banking organizations, respectively, in 1Q20.
“Due to COVID-19, most of the organisations have reduced their IT spending for this FY2020. Businesses are revisiting their CapEx spending and would invest only if there is a pressing need, else would opt for OpEx models,” said Dileep Nadimpalli, Research Manager, Enterprise Infrastructure, IDC India.
Nadimpalli explained that the organizations are transitioning towards the public cloud (backup and DRaaS) to avoid capital spending in these ‘hard financial times’.
In terms of contribution of storage device segments to the market, the all-flash arrays (AFA) segment contributed 37.6% to the overall storage systems market in 1Q20.
NEW DELHI: The Indian external storage<\/a> market witnessed a decline of 20.6% Year-on-Year by vendor revenue in 1Q20 and stood at $87.8 million, market tracker firm IDC India<\/a> Tuesday said.
The market which was led by Dell Technologies<\/a> (31.4% share), followed by Hewlett Packard Enterprises<\/a> (15.9% share), witnessed a majority of YoY decline in professional services, manufacturing, and telecom companies in 1Q20.
On the other hand, Hitachi<\/a> and IBM<\/a> witnessed strong YoY growth in the same quarter due to crucial wins from government and banking organizations, respectively, in 1Q20.
“Due to COVID-19, most of the organisations have reduced their IT spending for this FY2020. Businesses are revisiting their CapEx spending and would invest only if there is a pressing need, else would opt for OpEx models,” said Dileep Nadimpalli, Research Manager, Enterprise Infrastructure, IDC India.
Nadimpalli explained that the organizations are transitioning towards the public cloud (backup and DRaaS) to avoid capital spending in these ‘hard financial times’.
In terms of contribution of storage device segments to the market, the all-flash arrays (AFA) segment contributed 37.6% to the overall storage systems market in 1Q20.
However, with the advent of modern NVMe solutions, more organizations are expected to adopt new-age flash technologies to address demands for data-intensive applications such as artificial intelligence<\/a>, machine learning\/deep learning, real-time analytics, etc, as per the report.
On the other hand, the market contribution of high-end storage systems grew by 3.7% YoY driven by increased investments from banking and government organizations in 1Q20 meanwhile, the entry and mid-range segments witnessed a steep double-digit decline during the same quarter.
IDC forecasts the external enterprise storage systems market to grow at a single-digit compounded annual growth rate (CAGR) for the 2019 – 2024 period.
The firm further expects a decline in storage spending in CY 2020 majorly due to the impact of COVID-19 pandemic.
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