Banking spend drives external storage Q1 growth in India

Banking led professional services, manufacturing, telecommunications and government to contribute more than 80 percent to overall external storage market in India in Q1, according to IDC India. The quarter saw a jump of 12.7 percent year-on-year to US$84.1 million.

All flash arrays segment saw a significant growth of 87.4 percent in Q1, contributing 30.9 percent to the external storage market. Adoption of all flash arrays offers better technical advance and performance at an affordable price which is benefiting customer due to competitive vendor environment. Organisations are actively considering flash options and are willing to pay the additional price premium to avail best in class performance.

Mid-range storage segment witnessed a significant growth due to large banking and professional services deployments while entry-level storage segment saw a decline in Q1. The mid-range segment continued to lead the market with more than 58 percent market share in Q1.

“Organisations are witnessing significant data growth and there are challenges for getting IT budgets for traditional hardware. Organisations are considering technologies to help data optimisation and consolidation as ways to overcome this difficulty,” said Dileep Nadimpalli, Research Manager of Enterprise Infrastructure at IDC India.

Dell continued to be the market leader with a 29.7 percent market share by vendor revenue, however witnessed a year-on-year decline in Q1. Hewlett Packard Enterprise 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 period from 2017 – 2022. This growth will be driven across industries and will be led by spend in 3rd platform technologies and digital transformation initiatives.

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