Skip to main content

Software-Defined Storage Revenue will Reach $16.2B

As more CIOs and CTOs prepare for the data deluge that's driving demand for enterprise storage solutions, savvy IT infrastructure vendors are already offering next-generation systems that meet the evolving requirements of their customer's digital transformation projects.

Software-defined storage (SDS) is one of several new technologies that are rapidly penetrating the IT infrastructure of enterprises and cloud service providers. SDS is gaining traction because it meets the demands of the next-generation data center much better than legacy storage infrastructure.

As a result, International Data Corporation (IDC) forecasts the worldwide SDS market will see a compound annual growth rate (CAGR) of 13.5 percent over the 2017-2021 forecast period, with revenues of nearly $16.2 billion in 2021.

Enterprise Storage Market Development

Enterprise storage spending has already begun to move away from hardware-defined, dual-controller array designs toward SDS and from traditional on-premises IT infrastructure toward cloud environments (both public and private) based on commodity Web-scale infrastructure.

SDS solutions run on commodity, off-the-shelf hardware, delivering all the key storage functionality in software. Relative to legacy storage architectures, SDS products deliver improved agility -- including faster, easier storage provisioning -- when compared to traditional storage system constraints.

"For IT organizations undergoing digital transformation, SDS provides a good match for the capabilities needed -- flexible IT agility; easier, more intuitive administration driven by the characteristics of autonomous storage management; and lower capital costs due to the use of commodity and off-the-shelf hardware," said Eric Burgener, research director at IDC.

According to the IDC assessment, as these features appear more on CIOs and CTOs list of purchase criteria, enterprise storage revenue will continue to transition to software-defined storage solutions.

Within the SDS market, the expansion of three key sub-segments – file, object, and hyperconverged infrastructure (HCI) – is being strongly driven forward by next-generation data center requirements.

Outlook for Enterprise SDS Solutions

Of these sub-segments, HCI is both the fastest growing with a five-year CAGR of 26.6 percent and the largest overall with revenues approaching $7.15 billion in 2021. Object-based storage will experience a CAGR of 10.3 percent over the forecast period while file-based storage and block-based storage will trail with CAGRs of 6.3 percent and 4.7 percent, respectively.

Because hyperconverged systems typically replace legacy SAN- and NAS-based storage systems, all the major enterprise storage systems providers have committed to the HCI market in a major way over the past 18 months.

This has made the HCI sub-segment one of the most active merger and acquisition markets, as these vendors prepare to capture anticipated SAN and NAS revenue losses to HCI due to enterprises shifting toward more cost-effective SDS solutions.

Popular posts from this blog

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic