Dell leads India’s enterprise storage market in Q1

India storage marketIndia’s external storage market revenue rose 13.8 percent year on year to $74.6 million in Q1 2017 — driven by banking, telecom, professional services, manufacturing and government.

Enterprise technology company Dell is the leader in the Indian storage market with a market share of 43.4 percent. Main rival HPE is in the second position, according to IDC.

IDC said IBM and Netapp achieved significant growth due to uptake from banking, telecom and government verticals.

Growth drivers

Multimillion-dollar deal in telecommunication vertical drove Q1 growth in the external storage market. IDC did not mention about the particular storage deal in the storage market. IDC noted that industry verticals such as banking, telecom, professional services, manufacturing and government are the key contributors in storage market of India.

Industry verticals such as securities, transportation and insurance have also achieved significant growth in storage market.

“External Storage is getting very dynamic to address new age demands from emerging technologies such as real-time business analytics, Internet of Things, augmented reality, robotics, etc,” said Dileep Nadimpalli, associate research manager, Enterprise Infrastructure at IDC.

Trends & Facts

The storage market report from IDC said flash storage, Hyper-converged infrastructure and Software-defined storage technologies are getting more relevance across Indian organizations.

High-end storage segment achieved a strong growth due to large deployments from telecommunications, banking and government verticals.

At the same time, entry-level storage saw a marginal growth while mid-range external storage saw a marginal decline in storage market share.

The first quarter witnessed significant uptake of All flash Arrays (AFA) among telecom, BFSI, IT/ITeS, government and manufacturing units.

IDC noted that the acceptance of AFA is increased as it offers better performance at an affordable price. Also, witnessed increased acceptance of Hybrid Flash arrays (HFA) as this offers both capacity and performance with a single array.

IT infrastructure modernisation and reducing infrastructure footprint are the key IT priorities across organizations in India.

Technologies such as Hyper-converged infrastructure and Software-defined storage are gaining traction to address both optimization demands and remove infrastructure management complexities.

Q1’s impressive growth in storage market is unlikely to continue in the next two quarters as the implementation of GST is expected to have a negative impact on enterprise IT.