Digital Data Explosion to Drive Growth in the Network Attached Storage (NAS)
GIA announces the release of a comprehensive
global report on Network Attached Storage (NAS) Devices markets. Global market
for Network Attached Storage (NAS) Devices is projected to reach US$7.0 billion
by the year 2017. Growth will be primarily driven by the increase in the number
of home and small business networks, continued data explosion, and the growing
need for data backup and archiving.
In a knowledge driven era where information is the engine that
drives enterprises worldwide, management of information is gaining utmost
importance. Widespread implementation of CRM and ERP solutions have contributed
towards enterprise data explosion by triggering exponential growth in the volume
of information generated about partners, suppliers and customers. Other factors
driving data growth and the ensuing storage needs include generation of rich
media, regulatory compliance that mandates maintenance of audit trails, and
financial data, and gargantuan email archives, given that email is a primary
vehicle of business communication. Networked machines and processes additionally
generate a steady stream of real time data, which adds to the information
overload being confronted by modern companies. While data storage remains an
indispensable IT need, the growing magnitude of the importance of this very
basic IT function can be put into perspective by the fact that information is
currently multiplying at a rate of over 65% each year and total data generated
worldwide is projected to reach over 3 million petabytes by the year 2020.
Against this backdrop, the critical importance of data storage comes to the
fore. As companies seek to overcome data storage performance limits, significant
increases are in store for NAS Storage devices.
Network-attached storage (NAS) is one of the on-line storage
architectures that promise to deliver businesses with cost-effective, scalable,
and manageable alternatives for ever-growing data requirements. As a networked
storage technology that allows connected host systems to share data, NAS devices
have gained immense popularity in a short span of time, thanks to the wide range
of benefits they offer. Advantages stacked in favor of the NAS technology
include increase in data availability, improvements in server performance,
optimized data access, end-user transparency, easy setup, low installation and
maintenance costs and platform-independence.
Demand for NAS devices is forecast to be driven by the growing
need for anytime, anywhere accessibility to corporate & internet networks.
Emphasis on business continuity planning, growing adoption of remote and virtual
office environments and the ensuing need to provide remote access to corporate
networks to employees, is helping fuel the uptake of the NAS technology.
Business continuity requires maintaining backup copies of primary data and NAS
devices will find increased use as filers and backup targets in storing copies
of user data. Integration of native deduplication abilities in NAS devices is
additionally expected to enhance the use of NAS devices as backup targets. Data
deduplication replaces duplicate files on the NAS network with tags/links
referring to the original file. Reduction in volume of the data being actually
stored on the NAS consequently reduces the amount of data that the NAS must
access. Therefore, less head movement and less searching results in faster data
Demand is also expected to remain especially high among SMBs,
as NAS devices provide a cost effective solution for these companies with are
often saddled with issues, such as, limited access to financial and IT
resources. Larger businesses are also gradually creeping into the spotlight as
potentially lucrative clients for NAS vendors. The market is gradually
witnessing transition from SMBs specific solutions to more advanced large
enterprise-centric solutions. Unlike SMBs that adopt NAS solutions for core
applications, large enterprises rely on NAS for less mission-critical
applications, and for specific departments, workgroups and remote offices.
Technology innovations aimed at raising the performance bar of
NAS devices is expected to benefit the market in the medium term. Cloud
computing, in this regard, promises to expand the functionalities of NAS devices
and eventually expand market opportunities in this space. Cloud network-attached
storage (NAS) is currently waxing in popularity. As enterprises are now looking
at deploying storage architecture, which lowers the total cost of ownership
while improving Return on Investments (RoI), the concept of cloud NAS is
snowballing in the market. The key benefit of Cloud NAS is the ability to access
information instantaneously without the limitations of the physical location of
the data. Advancements in key capabilities such as payment models, reliability,
security and multi-tenancy are expected to increase the adoption of cloud
storage in the upcoming years.
IT spending in Europe currently remains nervous with the mixed
signals emanating from the handling of region’s debt crisis driving the IT
industry to swing between hopes and fears. At the extreme pessimistic end of the
spectrum is the belief that if the debt and financial dominoes begin to fall
across the core euro-zone economies, IT spending could painfully crimp in
technology sectors, such as, computing hardware, enterprise software and IT
services. Even in the event of the European Union successfully resolving the
euro area debt crisis, slower and rather anemic growth will continue to haunt
the region even into the future, primarily because the euro crisis in reality
masks a deeper financial and economic malaise built through years of
unsustainable fiscal policies adopted by profligate governments in the euro
zone. Companies and enterprises in all industrial sectors are therefore expected
to remain prepared for times of scarce financial resources. Austerity measures
like increased taxes and higher costs of financing, will create fiscal pain,
which in turn will take its toll on corporate IT spending. IT in the public
sector, under such a scenario, is forecast to be acutely impacted, given the
greater pressure faced by government owned companies to shed debt and prune down
budgets. IT budget cuts, project cancellations, postponements and the general
tendency to do more with less will act as a drag on IT spending.
Currently, however, as the “Business Climate Indicator”, a key
pillar of growth in the market, improves in the European Union reflective of the
guarded optimism prevailing in the marketplace, there exist little signs of
changes in corporate spending on critical IT products and services. Against this
backdrop, outlook NAS devices remains positive with demand largely expected to
hold up in the year 2012.
As stated by the new market research report on Network
Attached Storage (NAS) Devices, North America represents the largest market
worldwide. Strong future growth is however expected to stem from Asia-Pacific.
The region is forecast to grow at a CAGR of 14.1%, over the analysis period.
Major players in the global marketplace include Dell Inc., EMC
Corporation, Hewlett-Packard Company, Hitachi Data Systems Corporation,
International Business Machines (IBM) Corporation, LSI Corporation, NetApp Inc.,
Overland Storage Inc (SnapServer)., Panasas Inc., SGI Corporation, among others.