External data storage market in India crosses $100 million mark: IDC

NEW DELHI: Investments from telecom, banking and government have helped the external data storage market in India to cross the $100 million mark in the fourth quarter of 2015, research firm IDC today said.

Spendings from telecom vertical, complimented by banking, IT/ITeS, manufacturing and government drove these storage numbers in October-December 2015, IDC said in a statement.

Technology refresh, ERP upgrades, surveillance, digital transformation and 4G rollouts were the key workloads/use cases for storage deployments in the said period, it added.

The external enterprise storage systems market is expected to grow in single digit in terms of compound annual growth rate ( CAGR) for 2015-2020.

"Major spending is expected from telecom, banking, multiple state government surveillance projects, defence and various Central government ministries in the near future," it said.

EMC continued to lead the market and increased its market share significantly from 29 per cent to 52 per cent in the fourth quarter of 2015.

Except EMC, all other vendors including IBM, HP, NetApp and Hitachi witnessed a decline in market share.

IDC said a visible trend in the segment is the increasing deployment and utilisation of technologies like software defined storage, virtualisation, compression, de-duplication and thin provisioning due to an exponential data growth and to optimise the existing storage infrastructure at times.

Cloud based back-up/ disaster recovery solutions are also gaining traction across organisations to avail best in class services with minimal capital expenditure, IDC said.

This is expected to cannibalise some portion of traditional storage revenues but will open up a new class of storage buyers as well, it added.