Storage market thrives in down economy

Customer buying fueled by digital information growth, efficiency needs

The storage market is thriving despite a tough economy, as exploding digital information growth has forced customers to add more capacity and upgrade to newer storage systems that are faster and more efficient, analysts say.

"It's a lot easier for customers to put off the purchases of servers, some software and applications, and even desktops than it is to put off storage purchases," says Charles King of the Pund-IT analyst firm. "Once a company moves into the digital world ... information just piles up. You've got to have some place to put it."

Worldwide disk storage shipments will double in capacity every two years through 2012, the analyst firm IDC predicts. Spending on disk storage is expected to top US$34 billion four years from now. The most important force behind this growth is "the emergence of content-rich business applications in areas such as telecommunications, media/entertainment, and Web 2.0," IDC reports.

EMC has profited from this spending spree, reporting 20 consecutive quarters of double-digit revenue growth. Storage vendors Brocade and NetApp each reported double-digit revenue growth in their most recent quarterly earnings.

Customers are finding new storage systems hard to resist partly because read/write performance has improved significantly more than microprocessor performance has for several years, King says. "Customers can really get great bang for their buck in buying new storage systems," he says.

Still, IDC analyst Richard Villars says he doesn't like to call any industry recession-proof. One potential weak point in the market is its reliance on storage-hungry social networking sites like MySpace, YouTube and Flickr. If the social networking market were to suddenly dry up, storage vendors would lose some revenue, he says.

But storage vendors have done a good job diversifying their offerings, and there are several factors fueling growth in the storage market, he notes. Customers are shifting from tape to disk-based backup, in order to gain faster recovery times. Plus digital information growth affects many industries. Hospitals are storing X-rays and other medical information digitally, while media companies convert music and movies to digital format, he notes. The need for increasingly powerful data analytics is helping storage vendors too, he says.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags storage market

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jon Brodkin

Network World
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?