Storage demand drives revenues

The storage market will be worth $30 billion by 2006 according to Ovum. This growth, it says, is being driven by the ‘must have’ attitude organisations currently have towards storing their data.

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By  Matthew Southwell Published  May 13, 2002

Ovum is predicting that the growth of mid-range storage solutions will create market revenues of $30 billion by 2006. This growth, the analyst house reports, is being driven by the ‘must have’ attitude with which organisations are addressing storage.

Graham Titterington, senior analyst at Ovum, argues that in the current economic climate data has become more important as it delivers the competitive advantage organisations need to succeed in a period of reduced spending.

"Companies are now realising that if they lose information that is backed up on a daily or weekly basis, it represents significant commercial loss,” he says.

The growing demand for storage solution is not only increasing market revenue but also changing the way storage providers operate. Titterington explains that the formation of partnerships is becoming more commonplace as vendors attempt to deliver all encompassing solutions to storage hungry customers.

“The strategies for each player differs, however the common thread is the need for them to form partnerships. Partnerships between the various players will enable the best delivery of technology, and solutions to the customers,” he states.

A change in technologies is also occurring as vendors attempt to deliver a low cost alternative to physical disc back up. “There is a push to develop networked storage, through hardware and software solutions utilising new IP based technologies such as iSCSI. The market is ripe because at the moment many companies have low-end storage solutions relying on physical disc back-up,” explains Titterington.

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