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CEMA to surpass Japan in enterprise storage spend

IDC forecasts 2014 revenue swell in emerging markets, driven by infrastructure projects

CEMA to surpass Japan in enterprise storage spend
Digital content, data protection, and archiving are expected to drive continued demand for more storage capacity.

The regional landscape for enterprise storage is in the midst of change as spending in emerging markets, such as those found in Central Europe, the Middle East, and Africa (CEMA), begins to outpace spending in more mature regions.

According to new research from International Data Corporation (IDC), CEMA will surpass Japan in terms of enterprise storage end user spending in 2014. And by 2015, Asia-Pacific excluding Japan (APeJ) will unseat a struggling Western Europe as the second largest region behind only the United States.

"Some emerging regions, specifically APeJ, the Middle East, and Africa, will continue growing at high rates, fueled by long-term demands for storage and the creation of new storage infrastructures in fast-growing economies," said Natalya Yezhkova, research director, Storage Systems at IDC.

"Other emerging regions are expected to maintain growth rates that are comparable to those of more mature regions."

Overall, after two years of exceptional growth, the enterprise storage systems market has come back to Earth as users embrace more efficient ways to store data. End-user spending is now expected to grow at a modest compound annual growth rate (CAGR) of 4.1% during the 2012-2017 forecast period, reaching $42.5bn by 2017. However, a slowdown in revenue growth is no indication that end-user demand for storage capacity will be diminished. Digital media and content, data protection, and archiving will be among the major drivers behind continuous demand for more storage capacity.

"Adoption of storage efficiency technologies and cloud services will contribute to modestly slower growth in enterprise storage system capacity shipped," added Yezhkova.

More than 102 exabytes (EB) of external and over 36EB of internal storage system capacity will be shipped in 2017, still significantly higher than the 20EB external and 8EB internal storage shipped in 2012. To store the data in the most efficient way, users must not only implement various technologies that help eliminate redundant copies of the data or boost utilisation rates of available storage assets, but also increasingly consider moving beyond their own data centres and adding third-party storage services, both public and private, to the pool of viable storage options.

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