Despite Cautious Buyers, IDC Predicts Worldwide Spending on Storage Services Will Grow 6.4% to Reach

FRAMINGHAM, MA – MARCH 31, 2003 – As in the larger IT market, storage services buyers moved cautiously in 2002, which led to longer sales cycles. This situation has not changed in early 2003 – buyers are paying closer attention to pricing and show a general reluctance to spend on anything beyond what is absolutely essential to the organization. In a new study, IDC forecasts that the worldwide storage services market, including storage consulting, integration, management and support services, will grow at a compound annual growth rate (CAGR) of 6.4% from 2002 to 2007. IDC forecasts that the U.S. storage services market will grow during the same period by 6.1%.

 

Because buyers are being cautious about spending in an era of limited budgets, storage services spending today is tied even more closely to specific projects and initiatives within the organization, often driven by larger business challenges and solutions (e.g., a new application that is deemed critical to the business requires a networked storage infrastructure to perform adequately). The exceptions to this are storage management or outsourcing deals, which tend to be driven by an organization's longer-term strategy around reducing costs and gaining better performance and availability from the storage investment.

"Customers continue to need assistance with consolidation projects, backup and recovery, and the move to networked storage," said Doug Chandler, program director, Storage and Data Management Services. "This has kept spending on storage services relatively steady, even as storage product sales have slowed."

IDC believes that for storage service providers to be successful in this market, they should consider the following:

Leverage customers' obsession with ROI and higher utilization rates.

Help reduce complexity.

Focus on customers' larger business problems and possible solutions.

Explore indirect sales and delivery of storage services.

This IDC study, Worldwide and U.S. Storage Services Forecast and Analysis, 2003-2007 (IDC #28992), presents a new five-year forecast, through 2007, for the worldwide market for storage services. The purpose of this document is to identify and quantify the impact of recent trends and events influencing the storage services opportunity worldwide. A five-year top-level forecast in this market is presented for the Americas, EMEA, and Asia/Pacific. A U.S. forecast is also provided for this period. (Note: IDC shortly will publish an additional storage services forecast document that breaks out specific storage services categories, including consulting, implementation/integration/management, and support, and discusses trends in each of these segments.)

To purchase this document, call IDC's volume sales hotline at 508-988-7988 or email ctoffel@idc.com.

For additional information about IDC's Storage and Data Management Services research, please contact Virginia Lehr at 508-935-4188 or email at vlehr@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com/.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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