The latest data from the Worldwide Quarterly Enterprise shows a massive 6 percent growth in the external storage vendor revenue for the fourth quarter of 2019.
The Year-on-year (YoY) growth is at $91 million in the final quarter. The huge external storage sales came from the banking, government, manufacturing, and telecommunications industries. Professional services also comprise the 81.2 percent, in addition to the mentioned services.
The growth is only 28.8 percent of the overall external storage systems market in the 4Q19. Real-time applications are expected to increase and drive growth for the industry in 2020. However, because of the flu pandemic, experts believe that sales can be affected as more businesses suffer.
“India witnessed back to back strong growth rates for the last couple of years, but COVID-19 outbreak would act as a major barrier for the storage market in CY20. COVID-19 would have a negative impact on verticals such as manufacturing, transportation, construction, personal and consumer services, etc.,” said research manager Dileep Nadimpalli.
The demand is pretty much the same but is somewhat reduced because of the outbreak. Last year’s recorded growth was attributed to the digital economy of India. Now that there’s a mandate for employees to work from their homes, industry experts believe that demand can still increase despite the pandemic.
From all market leaders in external storage, Dell Technologies led the biggest vendor revenue with 25.6 percent of market share. Dell is the only company that witnessed phenomenal growth in the fourth quarter of 2019. It was followed by Hewlett Packard Enterprise with a 14.9 percent market share.
All other major vendors witnessed a decline in the YoY market share in 2019’s fourth quarter due to several factors.
“Large technology refresh projects along with multiple digital transformation initiatives and incorporation of emerging third platform technologies and innovation accelerators such as IoT, AI, and big data, across organizations would drive storage demand in the near future,” said the report.
Industry experts initial projection revealed that the external enterprise storage system market growth can be single-digit CAGR between 2019-2024. However, this prediction didn’t include a pandemic that would gravely affect the storage systems market.
The automation of different sectors pushed organizations to enhance storage systems required to the highest level, in order to serve clients better. Major vendors are able to create deep learning infrastructures to address the demand of companies and organizations.