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User Spending on Enterprise Storage Systems Reached $31 Billion in 2010

18% growth over 2009!

The worldwide enterprise storage systems market showed its strength and resiliency by realizing 18% growth in customer revenue between 2009 and 2010, after rebounding from the global economic recession.

According to new research from International Data Corporation, end-user spending on enterprise storage systems reached $30.8 billion in 2010, and the 18% growth over 2009 was the highest since IDC started tracking the market in 1993.

As the two-year roller coaster ride comes to an end, growth rates will travel a much less volatile track in the coming years. The enterprise storage systems market will grow at a comfortable 3.9% CAGR between 2010 and 2015, and revenues will reach $37.3 billion in 2015. Growth in new terabyte shipments will slow down in comparison to historical rates, hampered by the adoption of various storage efficiency technologies, large installed base of TBs, and growing, albeit slow and deliberate, use of cloud-based storage.

iSCSI SAN and NAS represent the two fastest growing material installation segments of the worldwide enterprise storage systems market from both the revenue and terabyte perspectives. Spending on iSCSI SAN and NAS will continue to experience strong growth through the forecast period, driven by a major shift of storage deployments toward IP-connected systems.

Additional findings from IDC's research:
  • Rich digital content, digitization of industry specific content, and disk-based data protection and archives will create an additional boost for the NAS segment.
  • There will be a noticeable shift in end-user spending to the entry level and midrange price bands driven by increasing adoption of modular system architectures.
  • Emerging market segments and technologies will have a profound impact on the storage systems market landscape in the next five years. Among them are emerging customer segments such as content depots and cloud storage providers, emerging data use cases such as business analytics and medical imaging, and emerging solution bundles such as application appliances.
The IDC study provides a forecast of the worldwide enterprise storage systems market for 2011-2015 as well as discussion of forecast assumptions and major market trends. IDC expects that after sharp declines in 2009 and a fast recovery in 2010, the worldwide end-user spending on enterprise storage systems will return to a stable single-digit growth per annum. However, this stable growth typical of mature markets does not reflect the dynamism of the market itself.
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