The storage services market smashs $10 billion barrier by 2005

It's not just a question of support anymore, as the storage services market matures managed services and outsourcing will become more prevalent, says IDC.

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By  Greg Wilson Published  January 23, 2002

The European storage services market is due to reach a massive $10 billion by 2005. According to forecasts by IDC, the storage services market will register a steady 8% compound annual growth rate (CAGR). Higher value areas of the services market, particularly consulting and outsourcing will grow at 10% CAGR.

“Storage has now become strategic,” said Lionel Lamy, research manager for IDC’s European Infrastructure Management Services.

“Companies increasingly rely on access to information to conduct everyday operations, and storing information in the most reliable, secure and easily accessible way is becoming crucial. Value for money or cost effectiveness is only adding to the complexity of the equation,” he added.

The analyst house is predicting that the storage utility market is due for consolidation over the next five years, as larger players emerge.

The mainstay of the storage services market remains support, but by 2005 storage management and outsourcing will be prevalent.

“Beyond simple cost control, IT managers are required to maximise the return on investment of previous storage hardware purchases,” commented Lamy.

“Many companies made the mistake of throwing money at their storage problem — for example, buying more storage hardware. Now that economic conditions are more trying, companies need to maximise the use and effectiveness of previous storage investment. This is pushing he development of storage software as well as services forward,” he added.

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