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The data storage market will grow by 35% in 2005, and data storage is the number one priority for mid-sized enterprises that plan to "invest heavily" in 2005, says a new study from the Info-Tech Research Group.
Data storage spending will outpace spending on servers, telephony and security software, the survey of over 1,400 IT decision makers found. Respondents cited regulatory pressures (such as Sarbanes-Oxley and HIPAA), continuity planning, and the popularity of multimedia as key drivers for investing in storage.
Storage Area Networks (SANs) are the hottest segment of the storage market, with Info-Tech predicting a 40% growth in the SAN market in 2005.
"As prices continue their sharp decline and SAN products become more commoditized, this important storage technology becomes increasingly accessible to mid-sized companies," Dr. Curtis Gittens, Info-Tech Senior Research Analyst, said in a statement. "Leading storage vendors such as IBM, HP and EMC, as well as strong innovative new entrants such as LeftHand Networks, Compellent Technologies, and Intransa are leading the charge into the mid-sized market. We expect the demand for SANs to increase sharply as vendors move down-market from their current Fortune 1,000 focus."
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