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Storage Technologies Market in South Asia and Middle East Plod on Despite Tighter IT Budgets, Finds Frost & Sullivan

Posted on: Thursday, 13 August 2009, 01:36 CDT

MUMBAI, India, August 13 /PRNewswire/ -- The emerging storage technologies market in South Asia and the Middle East seems relatively insulated from the current economic slowdown, as a boom in data growth as well as enterprises' need for business continuity, disaster recovery solutions, and regulatory compliance have caused a spurt in the technology's adoption levels. Businesses are increasingly focusing on gaining an edge by reducing operational risks and there have been substantial advances in data storage to supply the demand for better data management and recovery.

New analysis from Frost & Sullivan (http://www.ITservices.frost.com), Emerging Storage Technologies and Adoption in South Asia and Middle East, finds that the market in India, Saudi Arabia, the United Arab Emirates, Egypt, and Sri Lanka earned revenues of $653.4 million in 2008 and estimates this to reach $2146.4 million in 2015. This growth is driven by increased data, computing and business continuity requirements of enterprises.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Caroline Lewis, Corporate Communications, at caroline.lewis@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

The external storage market has been picking up pace over the years due to a boom in data growth as well as a need for business continuity, disaster recovery solutions, and regulatory compliance. Businesses are increasingly focusing on gaining an edge by reducing operational risks and there have been substantial technological advances in data storage to facilitate better data management and recovery. Enterprises are either investing in in-house storage solutions or are outsourcing their data backup needs, as they are looking to improve their ability to recover from any disaster at the earliest to ascertain business continuity.

"Network storage helps data centers achieve consolidation, resulting in better utilization, optimization of resources, and lowered total cost of ownership (TCO)," says Frost & Sullivan Industry Analyst Saumya Upadhyaya. "Enterprises can also utilize their resources better due to the shared network space between applications."

Within network storage, storage area network (SAN) is the most popular for its performance benefits, especially in mission critical applications. Network attached storage (NAS) is the solution of choice among customers with specific file-serving requirements.

Despite their significant benefits, storage solutions has lost some traction in the first half of 2009, compared to the previous years, due to cautious IT spending in the current straitened circumstances. In addition, the rapid adoption of storage technologies in the last few years is likely to create a lull in the market. The use of virtualization solutions to increase utilization of existing storage devices is also a threat to the growth of storage hardware market. Market participants also have to battle customer perceptions about the complexity and high initial costs of migrating and managing a networked solution.

However, storage solution vendors are hopeful that the market will take a turn for the better by 2010, with costs lowering and small- and medium-sized enterprises (SMEs) latching onto the opportunity to equip themselves with storage solutions. Although direct attached storage (DAS) solutions are expected to compete head-on against storage solutions in the SME sector due to their low initial costs, network storage provides better returns in the long term.

Vendors have been training their channel partners to step up customer education efforts among the stakeholders - both partners and end consumers - and make them aware of the technological and financial benefits of their solutions. They have also been introducing entry-level network storage devices to cater to the burgeoning entry- and mid-segment markets. These strategies seem to have paid off, with several new end users investing in network storage solutions.

"Apart from the traditional high IT spenders such as telecom, banking, financial services, and insurance (BFSI), and IT/IT-enabled services (ITeS), increasing data needs in sectors such as healthcare and media are showing robust growth potential," notes Upadhyaya. "In addition, increasing IT adoption initiatives by sectors such as government, retail, and infrastructure are driving demand."

Emerging Storage Technologies and Adoption in South Asia and Middle East is part of the IT Services & Applications Growth Partnership Service program, which also includes research in the following markets: virtualization market in India, green IT adoption trends, software as a service and so on. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

SOURCE Frost & Sullivan (India) Pvt. Ltd.

Source: PR Newswire

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