Aussie enterprise storage market to shrink 7.5% in 2020

Friday, 04 September, 2020

Aussie enterprise storage market to shrink 7.5% in 2020

Data and analytics company GlobalData has predicted that enterprise storage revenue in Australia will stage a quick recovery in 2021 following a decline in 2020, with a 5.7% CAGR over the forecast period 2019–2024. This will be driven by the need for efficient storage power to support their digital transformation initiatives. GlobalData forecasts that enterprise storage revenue in Australia will decline by 7.5% Y-o-Y in 2020, following the ICT spending cuts seen among enterprises in response to the COVID-19 pandemic. Slowdown or postponements of new office set-ups due to the pandemic have also negatively impacted the market.

Nidhi Gupta, Technology Analyst at GlobalData, said that enterprises are re-prioritising their investments on disruptive technologies like big data, artificial intelligence, automation and blockchain technologies. The need for storage power necessary to capture these huge datasets will also help drive growth in the Australian storage market over the forecast period. In addition, with more and more enterprises beginning to rely on cloud services, the demand for storage in the coming years will emerge from cloud service providers and data centre companies.

While storage hardware/resources were the largest revenue contributing segment for the overall storage market in Australia, there has been a growing traction towards software-defined storage platforms and applications in recent times. The popularity of the software defined storage market in Australia is driven by benefits such as freedom from hardware vendor lock-in, remote accessibility, high level of flexibility and scalability of storage power.

“Although SMEs will continue to generate majority share of revenues for enterprise storage market in Australia through 2024, large enterprises, given their long-term digital transformation strategies and high-capacity storage requirements, will be the fastest growing segment for enterprise storage in the country,” Gupta said.

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