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 SAN Market Research

The explosive use of the Internet, data warehousing, and e-mail, and the increased use of personal technology is creating an unprecedented demand to store information. Significant killer applications such as voice and speech recognition, digital language translation, digital photography, MP3 audio and MPEG video technologies, desktop video conferencing, and set-top boxes/web TV are also helping drive storage demand. The result is that while individuals are exponentially driving the demand for information, corporations are realizing the value of data and investing their resources accordingly. Dataquest projects the overall storage market for multi-user servers will grow from $31.7 billion in 1999 to $72.3 billion in 2003 in aggregate, representing a 24.7% CAGR.

Storage networking has emerged as one of the highest growth areas of storage. It is estimated storage networking revenues will grow from $508 million in 1999 to $3.5 billion in 2003, representing an 90.3% CAGR.


Data Consumption Growth

  • The amount of corporate data is doubling every 6 months. By 2002, enterprises will be consuming 1.4 million TBs of storage annually, 12 times the amount consumed in 1998.

Data Storage Management Software Market Projections

  • The overall data storage management software market is expected to generate revenues of $5.3 billion by 2003, up from $2.1 billion in 1998. This represents an average growth rate of 19.4% per year through 2002.

  • Sales of software to improve system reliability, availability, and scalability (RAS) will account for another $1.6 billion in sales in 2003.

  • The combined data storage management and RAS software markets should approach $7 billion by 2003. This represents an increase of 250% from $2 billion in 1996.

  • The storage networking market will grow 89% compounded annually between 1999 and 2003.

  • IT spending on storage will increase from 4% of the IT budget to more than 15% by 2003.

Declining Storage Cost

  • Over the past 5 years, the cost of server and storage hardware has decreased an average of 30% per year while maintaining the same level of performance.

  • From 1994-1998, a MB of storage dropped from $1.99 to less than $0.26. By 2002, this same amount of storage is forecasted to cost less than $0.03, representing a 98% drop in eight years.

  • For a 1% reduction in cost, there is a corresponding 4% increase in usage.

Storage Area Network (SAN) Market Projections

  • Within the mainframe arena, SANs already represent upwards of 25% of data center traffic. Outside of the mainframe area, SANs are expected to account for 25% of external disk storage and approximately 50% of multi-user tape storage by 2003, representing a potential market worth $9 billion and $400 million, respectively.

  • Assuming the traditional software-to-hardware ratios (1:5) hold true, this would translate into a $1.88 billion market on the software side by 2003.

IT Acceptance of SANs

  • 36% of IT managers surveyed in a ComputerWorld survey view SANs as an important technology.

  • IBM/ IDC estimates that 70% of all medium- and large-sized organizations will have implemented some form of SAN within 3 years.

Measuring ROI
   Cost of Downtime

  • Downtime costs a typical company between $20K-$80K per hour.

   Cost of Managing Storage

  • SANs can reduce storage management costs by nearly 57%.

Increased Availability Requirements

  • 80% of enterprises will see their LAN bandwidth requirements at least triple by 2001. By 2002, 20% of all enterprise LANs will fail to meet availability requirements.

allSAN Research Services
allSAN is now in the finishing stage of completing the new SAN 2001 Report. Our reports cover all major aspects of the market. Our team of researchers include former analysts from IDC and Dataquest, and marketing executives of storage companies. Other research companies only cover the Market Trends and Forecast, which are only two chapters of our report. We cover Market Requirements, Technology, Competitive Positioning and Analysis, Vendors and Products Pricing, Channels of Distribution and much more. The 400-page report is a complete guide for a company to enter a SAN market. It will give you all the information to succeed in the new field.

We have reports in other areas, like High Availability, Clustering, Internet Traffic Mgmt, Storage Over IP, IT For Rent, Appliance Servers, NAS Report, Storage, and other.

For more information or to get the table of contents, please contact us at

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