India’s external storage market fell over 14% YoY in Q3, 2020

India’s external storage market fell over 14% YoY in Q3, 2020: IDC

New Delhi: India’s external storage market witnessed a 14.8% year-over-year (YoY) decline by vendor revenue and stood at $79.9 million in Q3 2020 (Jul-Sep), according to IDC report.

This is third consecutive YoY decline the India’s external storage market witnessed in the CY 2020. Decreased spending from professional services, government, and manufacturing organisations in Q3 2020 caused this decline.

Emergence of new-age applications, multi-cloud, edge deployments, etc. are forcing organisations to revisit their enterprise IT architecture, according to Dileep Nadimpalli, Research Manager – Enterprise Infrastructure, IDC India.

“To adapt to this changing IT landscape, enterprises need intelligent, hyper agile, scalable, resilient, and cloud-ready data platforms which are flexible and easy to use,” said Nadimpalli.

All-Flash Arrays (AFA) contributed 39.2% to the overall external storage systems market in Q3 2020. Banking, telecommunications, and professional services verticals were the major contributors for AFA demand in Q3 2020.

Organisations are very keen on adopting AFA for primary workloads, but IDC expect AFA adoption even in secondary storage in the near future due to the availability of QLC media. As it offers better performance and cost advantages as compared to Hard Disk Drives (HDD).

Entry storage systems grew by 3.4% YoY backed by increased spending from the insurance vertical in Q3 2020. High-end and Mid-range storage segments witnessed a steep double-digit YoY decline in Q3 2020.

COVID-19 has brought forth multiple challenges for enterprises by forcing them to change their business and IT priorities to align to customers’ demands.

“We observed organisations considering OPEX based deployments like never before for business continuity requirements and new projects, which is cannibalizing traditional storage demand,” said Nadimpalli.

Dell Technologies continued to be the market leader in India’s external storage market with a 29.0% market share by vendor revenue, followed by NetApp with a 14.8% market share in Q3 2020.

IDC India Forecast

The external storage systems market is expected to grow at a single-digit compounded annual growth rate (CAGR) for the 2019 – 2024 period.

IDC forecasts that External Storage Systems spending is expected to significantly drop YoY in CY 2020 due to delayed demand across organisations attributing to COVID-19 impact. But expect market to recover in CY 2021.

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