Enterprise Storage Spending to Decline

The economic concerns and the Ukraine war are also hitting demand for enterprise storage systems (ESS). Last week, IDC lowered its September forecast of 2.5% growth for next year to a 1.4% decline. IDC said global revenues of $32.9 billion in 2022 would grow $32.4 billion next year.

While server growth is expected to recover, increased adoption of hyperconverged infrastructure could make an ESS recovery more challenging, according to IDC analysts Seminara and Chandarasanti.

“In the longer term, continuous [in] investments infrastructure modernization, fast-growing workloads, and support of the overall growth of digital data will be sustainable factors for the overall market growth, although the external ESS market will continue to be threatened by server-based solutions,” they noted.

Nevertheless, IDC is expecting the ESS market to recover in 2024. According to IDC’s forecast, ESS revenues of $34.3 billion will reflect a growth of 5.1%.