29 Sep 2020

COVID-19 Impacts India's External Storage Market Adversely in Q2 2020 Resulting in YoY degrowth of 36.8%: IDC India

NEW DELHI, September 29, 2020 – As per IDC’s latest Worldwide Quarterly Enterprise Storage Systems Tracker Q2 2020 release, India’s external storage market witnessed degrowth of 36.8% year-over-year (YoY) by vendor revenue and stood at USD 63.8 million in Q2 2020 (April-June 2020). The majority of the YoY decline is due to the impact of COVID-19 resulting in delayed demand for storage across organizations during the quarter.

“Organizations have been impacted differently due to COVID-19. Majority of the organizations are still in the crisis stage, responding to day-to-day challenges by focusing on business continuity, cost optimization, and business resiliency. Very few organizations are in the recovery stage, investing aggressively on digital capabilities to sustain the growth and also to avoid any future disruptions, like the current pandemic," says Dileep Nadimpalli, Research Manager, Enterprise Infrastructure, IDC India.

All-Flash Arrays (AFA) contributed 34.9% to the overall external storage systems market in Q2 2020. Most of the organizations are considering and deploying AFA for their primary workloads to enable better performance and also to address the future data requirements. New age Flash solutions such as NVMe and Storage Class memory would further drive the flash adoption in near future.

The entry storage category was the worst impacted as compared to high-end and midrange storage systems in Q2 2020. The decreased demand for entry storage was predominantly due to decreased spending from professional services organizations.

Multicloud journey is one of the key imperatives across the majority of the organizations to get the best of capabilities from various cloud service providers. Businesses are considering and adopting data management tools to enable them to cloudifiy their storage to seamlessly move across public clouds, private clouds, and traditional datacenters.

Major Vendors Analysis

Dell Technologies continued to be the market leader in India’s external OEM storage systems market with a 20.1% market share by vendor revenue, followed by Hewlett Packard Enterprise (HPE) with a 19.0% market share in Q2 2020.

IDC India Forecast

The external enterprise storage systems market is expected to grow at a single-digit compounded annual growth rate (CAGR) for the 2019 – 2024 time period. We expect storage spending in CY 2020 to decline significantly due to the COVID-19 impact, however expecting the market to recover in CY 2021.

About IDC Trackers

IDC Tracker  products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe



All product and company names may be trademarks or registered trademarks of their respective holders.

Coverage