India’s external storage market dropped 4.7 percent year on year to US$74.1 million in Q4, according to IDC.
The decline was attributed to lower spending in banking and manufacturing. However, these segments still are among the highest contributors to the external storage market along with professional services and telecommunications industries.
Increased adoption of 3rd platform technologies is pushing organisations to improve performance and optimise storage infrastructure to achieve its business objectives and respond to changing business needs faster with lower TCO.
“Adoption of all flash arrays (AFA) is growing exponentially and becoming mainstream in storage deployments across enterprises to address the demand for workload/application acceleration with high IOPS and minimal latency,” said Dileep Nadimpalli, Associate Research Manager of Enterprise Infrastructure at IDC India.
The AFA segment saw a significant growth at 54.9 percent in Q4 contributing to 23.4 percent of the overall external storage market. AFAs are getting deployed across most verticals with banking, telecommunications and professional services contributing to most of these deployments in Q4.
Flash footprint also continues to increase in hybrid flash arrays (HFA, as end users are procuring a higher proportion of SSDs vs HDDs to achieve a better price to performance ratio.
High end storage segment jumped 39.2 percent due to large deployments in telecommunications and banking industries. Consumption models for storage are impacting both mid-range and entry level segments leading to a decline in Q4.
“Digital Transformation will drive customers to look for storage requirements and innovative storage technologies. Adoption for HCI, object oriented storage, software defined storage grew in the India market addressing the new-age storage requirements of customers,” said Ranganath Sadasiva, Director of Enterprise Solutions at IDC India.
Dell Inc. continued to be the market leader with a 27.6 percent market share by vendor revenue, however witnessed a YoY decline in Q4. Hewlett Packard Enterprise and NetApp saw a significant growth predominantly driven by deals from banking and telecommunications industry.
The external enterprise storage systems market is expected to grow at a single digit compounded annual growth rate for 2017-2022. This growth is expected to come from an increased spending into digital transformation initiatives across industries. Banking and government verticals are expected to drive a majority of the growth in next year.