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Cisco Develops Channel Strategy In Pursuit Of Projected $5 Billion SAN Market: Page 2 of 2

The appeal of storage networks is great, and the potential market very broad. According to analysts at Forrester Research, small and medium sized businesses (SMBs) have a hearty appetite for new storage technology, with 65 percent of respondents to a survey published earlier this year indicating plans to purchase new storage equipment.

And in the overall United States the market revenue of SAN systems will exceed the combined value of network attached storage (NAS) and direct attached storage (DAS) shipments in 18 of 20 vertical markets by 2007, according to new research from IDC. (The two exceptions are the utilities and retail industries where DAS already has a strong presence.)

With the forecast of the storage market growth so bright, many industry observers believe that the opportunity for system integrators (SIs) and value-added resellers (VARs) is substantial. This is because storage solutions are becoming more sophisticated -- and therefore more conceptually complex; they require a consultative sales approach and a better understanding of the customers' applications and business needs.

That is why within the next three years IDC expects that most major storage systems vendors will need to develop additional indirect-sales routes through qualified resellers to help meet the growing demand for SAN solutions among end-user companies of all sizes.