Sydney, Australia, July 1, 2003 — Maintaining information availability, integrity and security has become a major imperative for organizations, so organizations across Asia/Pacific are focusing more heavily on their storage resources. In 2002, the Asia/Pacific external storage market totaled $1.175 billion, as companies tried to address the importance of preserving their information, according to Gartner, Inc. (NYSE: IT and ITB).
Gartner analysts said storage is forming one of the most important infrastructure-buying criteria across many parts of the Asia/Pacific region. In 2002, organizations continued to review their disaster recovery and business continuity plans, and information security was one of the major issues.
"Organizations are looking for ways to ensure the integrity and security of their information," said Phil Sargeant, research director for servers and storage for the Asia/Pacific Computing Platforms group. "Mechanisims such as data replication were seen as ways of addressing these issues. Data-replication requirements, whether the information was replicated locally, remotely or both, was one factor that drove storage capacity needs in the Asia/Pacific region in 2002."
South Korea led all countries in the region with $301 million in external storage revenue in 2002 (see Table 1). Gartner analysts said storage market growth in South Korea resulted from increasing amounts of internal information, including multimedia data, and a growing awareness of disaster recovery.
Table 1
Asia/Pacific External Storage Revenue and Capacity by Country for 2002 (Millions of U.S. Dollars)
Country
2002 Revenue
2002 Terabytes
South Korea
301
9,698
China
230
8,289
Australia
174
5,610
Taiwan
124
4,415
Singapore
92
2,818
India
66
2,347
Hong Kong
64
2,174
New Zealand
29
960
Rest of Asia/Pacific
95
3,454
Total External Storage Market
1,175
39,765
Source: Gartner Dataquest (June 2003)
China, the No. 2 country in the region was impacted by the split of the China Telecommunication Group. The telecommunications industry is the main sector influencing storage demand, and a great deal of capital investment was frozen during this period. However, China did receive a boost by international companies.
"Investment by international companies in China was a driver for storage growth in 2002. International IT vendors that moved their manufacturing and R&D facilities to China became an important source for midsize and high-end storage system growth," said Matthew Boon, vice president for Gartner's Hardware and Systems Research team in Asia/Pacific.
Hewlett-Packard has emerged as the overall market leader in external storage revenue with 25 percent and 24.3 percent market share in terms of revenue and capacity shipped.
"HP emerged as the overall leading external storage vendor in the first half of 2002, and this was continued in the second half of 2002. Most external storage revenue in the second half of 2002 continued to be derived from the External Direct Attached Storage (DAS) market," said Phil Sargeant. "For the first time in Asia Pacific HP overtook EMC as the leader in the SAN segment, while Network Appliance continued to be the No. 1 vendor in the NAS segment for the second half of 2002."
Table 2
Asia/Pacific External Storage Revenue and Capacity Market Share by Vendor for 2002
Vendor
2002 Revenue Market Share (%)
2002 Terabytes Market Share (%)
Hewlett-Packard
25.0
24.3
EMC
17.0
14.4
IBM
16.1
20.8
HDS
13.2
13.1
Sun Microsystems
10.8
8.9
Dell
3.0
3.3
Network Appliance
2.6
3.1
Storage Tek
0.8
0.3
Others
11.5
11.8
Total External Storage Market
100.0
100.0
Source: Gartner Dataquest (June 2003)
Additional information is available in the Gartner Dataquest Perspective IT Outsourcing Contracts: Crunching the Numbers. The report examines 1,055 IT outsourcing contracts awarded since 1988. The document analyzes the contracts in a number of ways, including by total value, across vertical industry, outsourcing vendors and by number. This report can be purchased on Gartner's Web site.
Gartner will provide additional analysis on the outsourcing industry at Gartner Outsourcing Summit 2003, to be held June 23-25 at the Century Plaza Hotel and Spa in Los Angeles, California. The Gartner Outsourcing Summit is the most comprehensive conference ever organized for users of outsourcing services, providing a 360° view of today's most important outsourcing issues, including offshore outsourcing, business process outsourcing, cost containment, buying smart, and optimizing deals through the Gartner Strategic Sourcing Life Cycle. For more details or to register for Gartner Outsourcing Summit 2003, visit www.gartner.com/us/itsourcing or call 1-800-778-1997. Members of the media can register for the event by contacting Christy Pettey at christy.pettey@gartner.com or at 408-468-8312. Solution providers interested in sponsoring the Summit should contact Steven Miller at 203-316-3962.
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