IDC's Predictions in Storage for 2006

2006 looks to be another year of relative stability, with revenue growing over 4% for storage systems, over 10% for storage software, and by 6% for storage services.  Among key trends shaping the overall storage market are the following:

• The desire for managing data within a tiered architecture is increasing and highlighting the need for storage tools that can work within heterogeneous environments.
• Opportunities for storage growth continue to migrate to less sophisticated customers (be they smaller companies or companies in developing countries) that are looking for turnkey solutions that fit within much smaller budgets. 
• Interest in the deployment of remote data centers for data archive and disaster recovery is increasing and highlighting the need for replication services that leverage lower-cost, ATA-based hardware.
• The desire to improve the efficiency of data management via virtualization strategies will drive significant changes in the storage ecosystems.

Learn More
Check out IDC's Top 10 Predictions in Storage in 2006 (Doc # 34967)

2006: Breakthrough Year for SMBs Stepping up to Advanced Storage Solutions

A recent IDC survey founds that SMBs show a growing interest for larger companies' storage solutions, and that the share of total storage technology spending represented by advanced approaches will be increasing in the next 12 months.

Key Survey Findings

• SMBs continue to rely on internal disks to meet their storage needs, however, medium-sized firms will increase their storage area network (SAN) capacity in the overall mix in the next 12 months.
• While the top small business storage priority for the next 12 months is to expand storage capacity, enhancing disaster recovery is the top priority of medium-sized businesses.
• Small businesses devote the largest share of disk storage to email and digital content. In contrast, medium-sized ones devote the largest share of their disk storage to backup and recovery, as well as data-intensive applications.

Keys to Success for Storage Vendors in SMB Market

• Continue to invest in both education and targeted technology initiatives
• Develop comprehensive but flexible technology approaches

Learn More
To find out more about distinctions and similarities among small, medium-sized, and very large firms in terms of storage needs and spending, check out IDC's new survey entitled U.S. SMB Storage 2006: The Move to More Advanced Storage Features (IDC #34894).

Grid-Based Storage: Opportunities Abound for Suppliers, but Advantage Goes to Microsoft

Supplier strategies for grid-based storage systems, with the exception of Microsoft's, fall into two categories, according to a recent IDC's study. Suppliers either see the world through grid-based storage glasses or through grid-based system/server glasses. Microsoft sees it through application glasses and, therefore, has in several ways the most complete and coherent strategy.

IDC's Opinion
Without strategy modifications, many of the incumbents will find themselves squeezed toward commoditylike positions and competing within a Microsoft (or other) application-service architecture.  

Key Suppliers Featured
The study analyzes the strategies of the following 11 key suppliers of advanced grid-based storage infrastructure: 3PAR Data, EMC, EqualLogic, HDS, Hewlett-Packard, IBM, LeftHand Networks, Microsoft, NetApp, Sun Microsystems, Veritas. Seven other potential grid-based storage system suppliers are also identified, as are 22 suppliers of a related storage capability, wide area file services (WAFS).

Learn more
Learn more about suppliers' strengths, threats, weaknesses, and opportunities in IDC's study entitled, Supplier Strategies for Grid-Based Advanced Storage, 2006 (Doc #34737)

Dell Takes #2 Shipment Position in the Worldwide Branded Tape Drive Market

While HP continues to dominate the worldwide branded tape drive market for the first three quarters of CY05, holding 30% of the total drive shipments, and 32% of all branded tape drive revenue, Dell took the number 2 shipment position, slightly ahead of IBM, with 18% of the total drive shipments (compared to 17% for IBM). However, Dell held a 12% revenue share, compared to 29% for IBM. IDC believes that Dell continues to be a key supplier in the worldwide branded tape drive market. Its revenue share reflects its rich mix of midrange tape drives.

IDC's Advice to Tape Suppliers

• Architect and manufacture new tape drives and automation that will provide value-add
• Continue to develop modular, low-cost tape products
• Invest in connectivity and integration in new storage topologies

How will Cornice's Agreements with Hitachi and Futjistu Impact HDD Industry Structure

With its strategic agreements with Hitachi GST and Fujitsu, Cornice advances to the ranks of a small but solid supplier of hard disk drives (HDDs). The focus for Cornice will continue to be consumer electronics (CE) in the foreseeable future, but with its newly acquired cross-licensing with Hitachi GST, other segments of the market are completely open.

Key Consequences

• Hitachi GST's cross-licensing agreement is meant to gain access to some interesting IP owned by Cornice
• Fujitsu's agreement is meant to yield future cost savings
• Cornice's recent agreements may ignite the next round of industry consolidation