investments in storage have decreased, it will continue
to be a focus area for many organizations
the past, we heard talk about how enterprise storage
requirements are doubling every year, and that storage
is becoming a major investment area under the IT budget.
While that may be true to some extent, the reality is
investment in Storage has decreased this year. Nevertheless,
storage is still the main focus for 34 percent of the
survey respondents, and CIOs are aware this is one area
that's crucial to their business.
There are several factors that influence the purchase
of storage infrastructure, but at the end of the day,
a CIO is responsible for the management and security
of datathe crown jewels of business. This data
is growing exponentially due to business growth and
the deployment of new applications like CRM. For many
companies, data storage requirements double every year.
We found that the average rate of increase in storage
requirement is 38 percent.
Of the six infrastructure segments within Storage, we
see that the main requirements this year are disaster
recovery solutions, SAN, NAS, and backup infrastructure.
47 percent of the companies need a Disaster Recovery
solution, 41 percent need a SAN, 35 percent need Backup
infrastructure, 31 percent need NAS servers, 25 percent
require DAS, and 12 percent require Storage Management
strong relevance of stored business data has led to
more deployment of disaster recovery and backup infrastructure.
Data recovery and data security have become a prime
concern for CIOs after tragedies like the September
11 attacks on the WTC and the earthquake in Gujarat.
Another concern is e-mail viruses and worms which cause
significant losses due to downtime and data corruption.
CIOs also worry about the staggering growth of data,
so data management is another focus area. That calls
for storage infrastructure that is scalable and provides
for high data availability. Storage Area Network (SAN)
and Network Attached Storage (NAS) address both issues.
While the former is highly scalable and offers consolidated
storage that's accessible to multiple servers, the latter
is a scalable file-level storage solution.
Organizations are increasingly embracing NAS and SAN.
At present, 22 percent of companies have a SAN while
24 percent have NAS solutions. Around 41 percent companies
said they required SAN while 31 percent require NAS.
DAS will continue to be around but companies will gradually
move away from DAS and opt for NAS/SAN instead, because
of the benefits these offer. At present 46 percent companies
use DAS but only 25 percent said they would require
DAS in future.
The investment in storage has reduced. Last year, the
average amount allocated for storage was Rs 246 lakh.
For 2002-2003 this amount has decreased to Rs 173 lakh.
Analyzing the data for funds allocation we notice that
most companies are spending up to Rs 25 lakh on storage.
At the other end of the spectrum many large-size enterprises
are investing more than Rs 15 crore.
Two conclusions can be drawn from this. Due to reduced
IT budgets, allocation of funds towards storage has
not increased. Also, more SMEs will be investing in
Disaster recovery rules
The highest requirement for various storage solutions
comes from the Banking/Services and IT/Telecom industries.
Almost all the banks who participated in the survey
said their storage requirement had increased. Last year
these banks were spending up to Rs 50 lakhs on storage.
This year however, some of these banks will be spending
Rs 1 - 15 crore (or more) on storage infrastructure.
The reason: Many of the leading banks are expanding
their retail services and deploying additional infrastructure.
The IT-enabled Services industry is becoming increasingly
dependent on support services like call centers, and
storage forms a vital part of the infrastructure in
The Telecom industry also has a strong requirement for
storage. This sector is witnessing the entry of private
players and the introduction of new consumer-oriented
52 percent of the companies in Banking/Services have
a requirement for Disaster Recovery solutions. Many
companies in this industry (40 percent ) also have a
requirement for SAN and DAS (36 percent).
47 percent of the companies in the IT/Telecom industry
have a requirement for Backup solutions. Another trend
that we observe is that the highest requirement is for
Disaster Recovery solutions across all industry segments.
This is followed by SAN and Backup solutions.
Storage has definitely become a major component of IT
infrastructure. Once the economy improves we can expect
Storage to become a key area of the IT budget.
The implementation of data-intensive applications like
CRM, and business expansion are driving growth in storage
requirement. Data security and data recovery are now
the most significant focus areas within the storage
Although SANs are poised for highest growth among storage
systems, we will see more deployments once the cost
of SAN solutions come down. Also, new standards are
required to minimize the complexity in setting up a
Although a majority of storage investments will come
from the SME segment, one should also keep an eye on
the large enterprises.
percent of the respondents said there was an
increase in requirement for Storage
The average rate of increase in storage
requirement is 38 percent
Last year, the average amount allocated
for storage was Rs 246 lakh. For 2002-2003 this
amount has decreased to Rs 173 lakh
Requirement is highest for Disaster Recovery
solution (47 percent) and Storage Area Network
31 percent said they have requirement
52 percent of the companies in Banking/Services
have a requirement for Disaster Recovery solutions.
Many companies in this industry (40 percent)
also have a requirement for SAN and DAS (36
47 percent of companies in the IT/Telecom
industry have a requirement for Backup solutions
5 benefits CIOs seek
Better data management
Improvement in operational efficiency