COVID-19 Impact on External Storage Spending is Evident with 20.6% YoY Drop...

COVID-19 Impact on External Storage Spending is Evident with 20.6% YoY Drop in 1Q20, IDC India Reports

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NEW DELHI, 30th June 2020 – As per IDC’s latest Worldwide Quarterly Enterprise Storage Systems Tracker 1Q20 release, India’s external storage market witnessed a decline of 20.6% Year-over-Year (YoY) by vendor revenue and stood at USD 87.8 million in 1Q20 (Jan-Mar). The majority of the YoY decline in storage spending was seen in Professional Services, Manufacturing, and Telecommunications organizations in 1Q20.

“Due to COVID-19, most of the organizations have reduced their IT spending for this FY2020. Businesses are revisiting their CAPEX spending and would invest only if there is a pressing need, else would opt for OPEX models. Organizations are moving to Public Cloud (Backup and DRaaS) so that they can avoid capital spending in these hard financial times,” says Dileep Nadimpalli, Research Manager, Enterprise Infrastructure, IDC India.

All-Flash Arrays (AFA) contributed 37.6% to the overall external storage systems market in 1Q20. With the advent of NVMe, more organizations are expected to adopt new-age flash technologies to address the growing demand for high-density applications such as artificial intelligence, machine learning/ deep learning, real-time analytics, etc.

High-end storage systems grew by 3.7% YoY due to increased investments from Banking and Government organizations in 1Q20. The Entry and Midrange storage segments witnessed a steep double-digit YoY decline in 1Q20.

Organizations are expected to delay their IT spending on technology refresh but would spend on new projects which would drive automation, increase performance, and optimize costs due to cash flow issues. Businesses would prioritize projects such as digital transformation, IoT, artificial intelligence, etc. in the near future.

Major Vendors Analysis

Dell Technologies continued to be the market leader with a 31.4% market share by vendor revenue, followed by Hewlett Packard Enterprise (HPE) with a 15.9% market share in 1Q20. Hitachi and IBM witnessed strong YoY growth in 1Q20 due to key wins from government and banking organizations respectively in 1Q20.

IDC India Forecast

The external enterprise storage systems market is expected to grow at a single-digit compounded annual growth rate (CAGR) for the 2019 – 2024 time period. We expect storage spending in CY 2020 to decline after a couple of strong YoY growth in the past consecutive years majorly due to COVID-19 impact.

About IDC Trackers

IDC Tracker  products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.

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