Adoption of SSD storage driving overall growth in the global market for data center storage

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Data center storage: Key market research findings

  • The Americas dominate the market geographically
  • SAN segment accounts for a majority share of the market’s revenue
  • Key vendors – Dell, EMC, HP, IBM, and NetApp

Technavio’s market research analysts predict the global data center storage market to grow at a CAGR of around 15% between 2016 and 2020. The market’s growth is driven primarily by the rising adoption of big data analytics. Big data analytics helps to understand the stored data and make business decisions based on them. For these analytic operations, high-performance storage infrastructure is mandatory. During 2015, the global data center storage market was dominated by the Americas with a market share of around 41%. The presence of a large number of data center facilities coupled with the expansion of existing facilities with more rack cabinets and storage systems will contribute to the growth of the data center storage market in the Americas during the forecast period.

The new market research report from Technavio presents a breakdown and analysis of the data center storage segments based on the storage system.

“The growing adoption of flash-based storage is the latest trend in the global market. SSD storage, commonly known as flash storage, offers greater efficiency compared to traditional HDD storage. Because of the higher cost involved in procuring flash-based storage systems, flash-based storage will experience a higher growth in large and mega data centers. The increased demand for storage infrastructure is prompting vendors in the market to decreasing their product prices,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.

At present, the global market for data center storage is dominated by the SAN segment with a market revenue of around $19 billion. SAN is a high-speed network of storage devices connected to the server. It provides block level data storage for applications running on networked servers. From the application point of view, SAN is similar to DAS in terms of compatibility during block level storage operations. SAN is preferred by enterprises because it offers better flexibility, availability, and performance compared to DAS storage systems.  

The key vendors in the global data center storage market include Dell, EMC, HP, IBM, and NetApp. Competition among the existing vendors is very high owing to the increase in data generated and processed by enterprises. Almost all the vendors in the storage market offer SAN, NAS, and DAS storage with few already experiencing increased revenue through the use of flash-based storage systems and others continuing innovations in existing and advanced systems specific to business needs. For instance, EMC is the leading vendor in the storage space with a market share of 28%-30% because of the increased adoption of its storage portfolio products coupled with VMware solutions and SDS-enabled infrastructure offerings. The competition in the market is increasing owing to the innovations in SDS, where EMC has an edge over VMware.

A more detailed analysis is available in the Technavio report, Global Data Center Storage Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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