Server-based Storage Market: Important Changes In Market Dynamics

The server-based storage solutions are gaining importance and ‘all-flash arrays’ are not the only option to achieve high level of performance for enterprise applications. Server-based storage is a dedicated external storage solution built according to industry-standard servers. It creates a pool of storage that can be accessed by any application server in the environment and the approach delivers increased flexibility, and performance at a lower cost for future growth. Server-based storage is used for accelerating application performance and lowering complexity and costs in their environment. Server based storage has few advantages over arrays as it powers the vast, affordable and often under-utilized server resources by taking advantage of the existing hardware. However, unlike hyper-converged systems, it scales flexibly and does not need a material change in server sourcing. Server based storage is a quick, simple and cost-effective way of managing applications. IT also provides benefits such as elasticity, resilience, scalability and performance.

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Technologies such as hyper-convergence and software-defined storage have brought server-based storage to the forefront. Organizations are focusing on a storage method which is easy to implement and upgrade and which allows them to maximize capacity resources due to remarkable growth in unstructured data. Advancement in cloud storage technologies have played an important role in the growth of server-based data storage. Other than hyper-convergence and software-defined storage, server-based storage include virtual storage appliances (VSAs), server storage area network (SANs), and distributed file systems.

The server-based storage market is experiencing high growth due to the factors such as rapid growth of unstructured data, and a need to coherently scale the data internally and into the server. Various benefits such as low-cost, high resource utilization and simplified management are estimated to help server-based storage market to grow during the forecast period.

There are few restraining factors for the server-based storage market such as requirement of customized hardware and software, vendor lock-ins, security and downtime. Server based storages are accessible only if the internet connection is online otherwise an end-user will not be able to access any of the applications or data from the storage. Additionally, as the server takes care of number of applications, there are chances of business processes to get temporarily suspended. Server-based storage might get locked in to a certain platform while multiple users are working on a single project. Security is the most critical concern of the server-based storage market. As there are multiple users working on the same server, a hacker might break into the data of other users which are hosted and stored on the server.

In recent years, companies are preferring solutions which are integrated, cost effective, scalable, and solutions which provide optimized storage and server resource utilization. All this can be achieved by using server-based storage solutions. Digital revolution provides a better opportunity to the server-based storage market in future.

The server-based storage market is segmented on the basis of deployment type, industry vertical, and region. The segmentation on the basis of deployment type includes cloud and on-premise. The industry verticals of the server-based storage market include banking, financial institutions and services (BFSI), retail, IT and telecom, healthcare, media and entertainment, logistics & transportation, government and public sector, manufacturing, and others. The server-based storage market is divided into five regions namely North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South America. North America and Europe are expected to lead the server-based storage market. The reason behind this growth is need of scalable, flexible and cost effective server based solutions in these regions. However, emerging markets such Asia pacific and Middle East countries might be in the race as IT and telecommunication, media and entertainment verticals are growing at a rapid pace in developing countries.

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Some of the key players in the global server-based storage market include Salesforce.com, Inc., Amazon.com, Inc., Google Inc., Microsoft, Oracle Corporation, IBM Corporation, Fujitsu, Hewlett Packard development LP, ActiveState Software Inc., Red Hat, Inc., SAP SE, EMC Corporation, Software AG, VMware Inc. and AT&T Inc.

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