Frost & Sullivan Global Storage Market 2013 Global Storage Market Research Report July 2013 Copyright 2013 Frost & Sullivan 0 Frost & Sullivan Global Storage Market Table of Content 1 2 3 4 5 Executive Summary............................................................................................ 3 Research Background ........................................................................................ 4 Global Storage Market Overview ........................................................................ 6 3.1 Product Classification and Definition ........................................................ 6 3.2 Industry Development Cycle ..................................................................... 7 3.3 Market Size .............................................................................................. 8 3.3.1 Global Market Size ......................................................................... 8 3.3.2 China Market Size .......................................................................... 9 3.4 Market Drivers and Restraints ................................................................ 10 3.4.1 Market Drivers .............................................................................. 10 3.4.2 Market Restraints ......................................................................... 12 3.5 Application.............................................................................................. 12 3.5.1 Enterprise Data Storage ............................................................... 13 3.5.2 Big Data Storage in Vertical Industries ......................................... 13 3.5.3 Public Cloud Storage Service ....................................................... 14 3.6 High, Middle and Low-end Storage......................................................... 14 Global Storage Market Competitive Analysis .................................................... 16 4.1 Competitive Landscape .......................................................................... 16 4.2 Competitiveness Analysis of Major Players ............................................ 20 4.3 Growth Matrix of Major Players .............................................................. 22 4.4 Major Players Analysis ........................................................................... 26 4.4.1 EMC ............................................................................................. 26 4.4.2 NetApp ......................................................................................... 26 4.4.3 Dell ............................................................................................... 27 4.4.4 IBM .............................................................................................. 29 4.4.5 Huawei ......................................................................................... 30 4.4.6 HP ................................................................................................ 31 4.4.7 HDS ............................................................................................. 33 Industry Development Trend............................................................................. 35 5.1 Market Development Trend .................................................................... 35 5.2 Product / Technology Development Trend .............................................. 36 5.2.1 Intellectualization Trend ................................................................ 36 5.2.2 Integration Trend .......................................................................... 36 Copyright 2013 Frost & Sullivan 1 Frost & Sullivan Global Storage Market Table of Chart Chart 1 Comparison between major storage technologies .................................. 6 Chart 2 Development Cycle of Global Storage Market ........................................ 8 Chart 3 Market Size of Primary Storage Technologies by Revenue (Global), 2008-2018E ................................................................................................. 9 Chart 4 Market Size of Primary Storage Technologies by Revenue (China), 2008-2018E ............................................................................................... 10 Chart 5 Impact of Market Drivers ...................................................................... 10 Chart 6 Impact of Market Restraints ................................................................. 12 Chart 7 Comparison of Big Data Usage among Vertical Industries, 2012 ......... 13 Chart 8 Competitive Landscape of Storage Market by Revenue (Global), 2012 16 Chart 9 Competitive Landscape of Storage Market by Shipment (Global), 201217 Chart 10 Competitive Landscape of Storage Market by Revenue (China), 2012 .................................................................................................................. 17 Chart 11 Competitive Landscape of Storage Market by Shipment (China), 2012 .................................................................................................................. 18 Chart 12 Competitive Landscape of Carrier Storage Market by Revenue (Global), 2012 .......................................................................................................... 19 Chart 13 Competitive Landscape of Carrier Storage Market by Shipment (Global), 2012 .......................................................................................................... 19 Chart 14 Competitiveness Analysis of Major Storage Vendors (Global), 2012 .. 20 Chart 15 Growth Matrix of Major Storage Vendors (Global), 2012 .................... 22 Chart 16 Growth Matrix of Major SAN Storage Vendors (Global), 2012 ............ 23 Chart 17 Growth Matrix of Major NAS Storage Vendors (Global), 2012 ............ 24 Chart 18 Growth Matrix of Major CAS Storage Vendors (Global), 2012 ............ 24 Copyright 2013 Frost & Sullivan 2 Frost & Sullivan 1 Global Storage Market Executive Summary The primary storage technologies include NAS, SAN and CAS. NAS is defined as a network based technology that is simple to implement and use in file storage. SAN is a storage technology that is able to integrate storage devices, connection devices, and ports in one high speed storage network, and transfer data in the file system through network on to disk storage. While CAS is an object-based storage where each data is addressed to a specific location for the users to locate. In 2012, the total revenue of primary storage technologies worldwide has reached USD9.2 billion, with an annual growth rate of 16.7% compared to 2011. As one of the largest market in the world, China has taken over 31.5% of the total revenue of the world. In 2012, the NAS has occupied the largest proportion of over 58.4% among the primary storage technologies in the world. It is the same situation in China, where the NAS has taken the largest market share of 48.9% in the overall market. However, the share of CAS is expected to experience the fastest growth in the future. In 2012, EMC occupied the largest market share in the global market, followed by NetApp and Dell. In the China market, IBM, EMC and Huawei ranked the top 3. At the same time, more local vendors, such as H3C and Toyou joined the competition in China market. Copyright 2013 Frost & Sullivan 3 Frost & Sullivan 2 Global Storage Market Research Background Global data volume is experiencing high growth in these years. Most organizations are facing with overwhelming data, while most of which is unstructured and disorganized, including emails, web pages, random knowledge and so on. How to store and manage these data, to achieve cost control, and to maximize storage resource utilization have become several of the most important issues for business executives and IT managers. The fast-growing stored data volume, especially the explosive growth of unstructured data, leads the ever-increasing demand in the storage market. Moreover, the awareness of storage system building and management is increasing among many governments and organizations around the world. This research is proposed to analyze the global and Chinese storage markets from both the market and technology perspectives. As the number of customers has risen rapidly and market demands has further extended, we have carried on research on the telecom carrier storage market typically. The scope of this research is mainly focus on the three primary storage technologies, including Network Attached Storages (NAS), Storage Area Network (SAN) and Content Addressed Storage (CAS). NAS is known as one of the primary disk based storage and network based technologies. SAN provides a solution to the increasing demand on big data and high-speed storage option. CAS, a technology suitable for permanent storage, was first proposed in April 2002. As laws and regulations regarding minimum storage life of specific documents, the market attention, as well as the market share of CAS is expected to increase in the near future. Copyright 2013 Frost & Sullivan 4 Frost & Sullivan Global Storage Market This storage market research focuses on mainly these three technologies because of the following reasons. First, considering the development history of storage market, the three technologies cover the entire development cycle of modern storage market. DAS, SAN, and CAS are representative technologies of the star-up period, development period, and growth period respectively. Second, from market share perspective, SAN and NAS are two mainstreams of the overall market, and they stay in the first two positions in the external storage market in recent years. Third, the three technologies will still represent the primary development trend of storage technology in the near future. Copyright 2013 Frost & Sullivan 5 Frost & Sullivan 3 Global Storage Market Global Storage Market Overview 3.1 Product Classification and Definition Data storage systems are highly demanded throughout a wide range of industries for file storage purpose. Various structures and features are available for different needs of companies. Chart 1 Comparison between major storage technologies Storage Data Stored Transfer Channel Typical Application Price NAS Files TCP/IP, Ethernet Documentation Server Medium SAN Data Block Fiber Database High CAS Data Object IP Content Management High Technology Network attached storages (NAS) is considered one of the primary disk based storage technologies applied among business users. It is defined as a network based technology that is simple to implement and use in file storage. The protocols of NAS include TCP/IP and Ethernet, which is fast but often carries high overhead cost. Taken business size into consideration, NAS is relatively less expensive than fiber channel storage area network (SAN), but sale at a much higher price level than some other types of storage, such as Direct Access Storage (DAS). The price differences not only provide a particular niche of customer bases for NAS, but also define the comparative advantage of NAS. SAN, known as the storage area network, is a storage technology that is able to integrate storage devices, connection devices, and ports in one high speed storage network, and transfer data in the system through network on to disk storage. With Fiber channel, SAN provide a closed system with high security and rapid transfer speed of up to 200 Mb/s. SAN is mainly applied to in data block storage. However, comparing to other available option, SAN is more Copyright 2013 Frost & Sullivan 6 Frost & Sullivan Global Storage Market expensive and less affordable. Therefore, it is not highly used by most companies. Because of the high price, some companies often consider NAS as a lower cost alternative to SAN. CAS, stands for content addressed storage, is network based technology that uses IP as the channel of transfer. Each data file stored in the system represents a designated data object; therefore, each data is addressed to a specific location for the users to locate. Comparing to other data storage options, this technology is relative new, and therefore hasn’t be widely used among business clients. 3.2 Industry Development Cycle Global storage market has experienced the start-up period, the development period, and entered into the growth period, in which the market has accelerated its growth, technologies have been improved, and the competition has upgraded. In the start-up period, DAS is the dominant storage technology to be applied. As it is not a network-based storage option, DAS has large limitations on data volume stored. Other than that, its vulnerability to downtime with external influences has made it a low-end, low-price storage option. With the increasing demand on larger data storage capacity, NAS technology emerged. As network-based storage technology, NAS has largely improved the problem of big data storage. However, NAS is still file-level storage, as it is limited in the expansion on storage devices for the purpose of storage capacity improvement. Comparatively, SAN, as a storage network itself, has provided a solution to high-speed storage option. No matter how, the emergence of NAS and SAN has led the storage market to enter into the development period. Copyright 2013 Frost & Sullivan 7 Frost & Sullivan Global Storage Market Furthermore, as SAN technology has been integrated with IP network, the development of the market has further accelerated. CAS, a technology suitable for permanent storage, was first proposed in April 2002. Compared with other traditional storage technologies, CAS has many advantages, such as lower cost, bigger storage space and easier maintenance. However, during the past 10 year, CAS has been widely accepted and recognized by the market. As laws and regulations regarding minimum storage life of relevant documents, such as criminal and medical history, have been released by US and Chinese governments, the market attention on CAS is expected to increase, as well as the market share in the overall market. Chart 2 Development Cycle of Global Storage Market 3.3 Market Size 3.3.1 Global Market Size The global storage market has accelerated its growth after gradual recovered from the economic crisis. In 2012, the total revenue of primary storage technologies has reached USD9.2 billion, with an annual growth rate of 16.7% Copyright 2013 Frost & Sullivan 8 Frost & Sullivan Global Storage Market compared to 2011. Due to the increasing demand of big data storage, the market is expected to keep a high growth in the next few years. Up to 2018, the market size is expected to increase to USD23.6 billion with a CAGR of 16.9% from 2012 to 2018. Chart 3 Market Size of Primary Storage Technologies by Revenue (Global), 2008-2018E Source: Frost & Sullivan In 2012, the NAS has occupied the largest proportion of over 58.4% among the primary storage technologies, due to the affordable price and relative strong storage capacity. On the other hand, CAS has gained less market recognition, while it gained 2.6% of market share. In the following years, affected by the governmental regulations, the proportion CAS occupied is expected to experience a gradual increase. 3.3.2 China Market Size As one of the largest market in the world, China has taken over 31.5% of the total revenue of the world in 2012. Meanwhile, compared to the global market, China market has experienced faster growth, as the total revenue increased from USD1.5 billion in 2008 to USD2.9 billion in 2012, at a CAGR of 17.7%. Copyright 2013 Frost & Sullivan 9 Frost & Sullivan Global Storage Market Along with the increase of market demand, the market size will experience a fast growth. In 2018, the total revenue of China market is forecasted to grow above USD8.9 billion, and the CAGR will exceed 20.7%. Chart 4 Market Size of Primary Storage Technologies by Revenue (China), 2008-2018E Source: Frost & Sullivan It is the same situation in China, where the NAS has taken the largest market share of 48.9% in the overall market. Compared to the global market, CAS has occupied relatively higher market share in China, mainly because that Chinese government regulated storage life of specific documents, which raised the demand and application of CAS. 3.4 Market Drivers and Restraints 3.4.1 Market Drivers Chart 5 Impact of Market Drivers Market Drivers 1 to 2 Years 3 to 5 Years Increasing Number of Enterprises Increasing Requirements on Data Volume Stored Increasing Requirements on Data Availability Copyright 2013 Frost & Sullivan 10 Frost & Sullivan Global Storage Market Emergence of New Competitors Level of influence from high to low: Increasing Number of Enterprises Along with the recovery of economy, the number of enterprises worldwide has gradually increased over time, which provided new potential customers to the storage vendors. Meanwhile, the enlargement of user base is expected to bring positive effects to the growth of market size. Increasing Requirements on Data Volume Stored The ever-increasing volume of data need to be stored has raised higher requirements on the storage capacity of the storage system. The development of user demand has driven the upgrade of existing technologies, and the emergence of new technologies. In the next 5 years, the raising demand on big data storage is expected to lead technology innovation, while driving the market to grow at a high speed. Increasing Requirements on Availability of Data Along with the increasing demand on stored data volume, users have also raised high requirements on data availability. As the mobility of working location increases, data is expected to be retrieved anytime at anywhere. High availability of data requires stronger storage systems, which will drive the technology development in the next few years. Emergence of New Competitors As CAS was first proposed in 2002, the storage market has entered into high growth period. Due to the emergence of more medium or small-scale new competitors, the competition is expected to be promoted, and the demand for higher-quality storage products and systems will increase. However, the factor Copyright 2013 Frost & Sullivan 11 Frost & Sullivan Global Storage Market will make less impact on the market compared to others, as the market shares are expected to be dominated by several large-scale players who master advanced technologies, and have large user bases. 3.4.2 Market Restraints Chart 6 Impact of Market Restraints Market Restraints 1 to 2 Years 3 to 5 Years Low Affordability on High Performance Solutions Lack of Environmental Friendly Solutions Level of influence from high to low: Low Affordability on High Performance Solutions Compared with larger enterprises, medium or small-scale companies often have limited budget. Most of the time, they are facing a trade-off between high performance and low cost. Meanwhile, the cost of continuous management and maintenance of storage system has also occurred as additional expense to users. As a result, the high price will limit the growth of the market. Along with the innovation and improvement of technology, the problem is expected to be solved gradually in the future, and the negative impact will become smaller. Lack of Environmental Friendly Solutions Due to the explosion of data volume worldwide, there is an increasing demand for big data, as well as cloud storage solutions. However, along with the rise of storage capacity, the energy consumption of storage system also increases dramatically. The market is calling for more environmental friendly big data storage solutions. Meanwhile, as time pass by, lacking of low-energy-consumed will become a more essential factor that restricts the development of the storage market. 3.5 Application Copyright 2013 Frost & Sullivan 12 Frost & Sullivan Global Storage Market 3.5.1 Enterprise Data Storage Enterprise data storage is the foundation for an enterprise’s information management. In order to integrate, manage and control the information distributed among individuals in every business unit, a centralized storage system is necessary and undoubtedly requires large storage capacity. Furthermore, securities, scalability, ease of use, total cost of ownership and service quality are required to consider when choosing optimized data storage solutions. In general, enterprise data include unstructured data in form of files like drawings, models, technical documentations, audio programs and structured data in form of database like parameter database, test database. NAS and SAN, as the major enterprise storage solutions, are wildly used to optimize the data architecture. NAS mainly deals with the unstructured data, while SAN applies mainly to structured data. To realize advantageous complementarities, enterprises are tending to adopt the combination of the two solutions. 3.5.2 Big Data Storage in Vertical Industries Chart 7 Comparison of Big Data Usage among Vertical Industries, 2012 Major Vertical Industries Big Data Usage Government Communications, Media and Services Banking and Securities Manufacturing and Natural Resources Insurance Retail Transportation Healthcare Providers Education Utilities Wholesale Trade Usage from high to low: Copyright 2013 Frost & Sullivan 13 Frost & Sullivan Global Storage Market With the rapid increase in the data volume, big data storage gains much more importance attached by various industries, especially government, and communications, media and services. Government, with the promotion of increasing investment in infrastructure construction, invests more on data storage system purchase these years. Big data storage provides reliable information protection and efficient information management for the construction and promotion of E-government system. In media industry, the data storage system generally collects characters, pictures, charts, videos and other data resources and also finishes formulating hundreds of media information products. Furthermore, financial area and manufacturing industry have bought out more and more demand on big data storage. 3.5.3 Public Cloud Storage Service Cloud storage helps to collect large amounts of server storage resources into an integrated system, and on the other hand, backs up users’ database on different servers to guarantee the reliability of data. Customer-facing data, distributed access data and data backups mainly apply to public cloud storage service. In public cloud storage era, with CAS, users can have access to the data stored in system without geographical limitation. And users only pay for the resources that needed or even needless to pay, while the providers bear the cost of building and maintaining the storage architectures. Different from traditional business model of selling hardware or software, the public cloud sells storage capacity instead of commodities and avoids waste of resources. 3.6 High, Middle and Low-end Storage Improvement in basic indexes like capacity, reliability and availability is the eternal theme of high-end storage systems. However, for the longer period Copyright 2013 Frost & Sullivan 14 Frost & Sullivan Global Storage Market needed for updating and relatively advanced technical development, high-end storage systems show slower developing trend. Meanwhile, middle and low-end storage systems have progressed well with the strengthening demand of medium and small-size enterprises. The emerging storage products have more kinds of functions and are more convenient for using and maintaining. Therefore, cost-effective middle and low-end storage systems are favorably received in both domestic and overseas market. Copyright 2013 Frost & Sullivan 15 Frost & Sullivan 4 Global Storage Market Global Storage Market Competitive Analysis 4.1 Competitive Landscape Chart 8 Competitive Landscape of Storage Market by Revenue (Global), 2012 Source: Frost & Sullivan The global competitive landscape of the storage market is clearly displayed in the pie chart above. As of 2012, the company dominating the largest percent of market share was EMC with a market share of 31.4%, followed by NetApp, who controlled 19.3% of the global market. Dell was listed under NetApp by taking 11.9% of storage market share. Worldwide companies like IBM, HP, HDS, Huawei, and Oracle each dominated under 5% of market share on the global scale. Other smaller storage system firm together took 22.0% of the total market share. Regarding the shipment, EMC was still considered the largest storage vendor worldwide, with 28.6% of market share. However, as the average prices of products and solutions of large-scale vendors are comparatively high, the market shares they have occupied decreased more or less correspondingly compared to shares ranked by revenues. Copyright 2013 Frost & Sullivan 16 Frost & Sullivan Global Storage Market Chart 9 Competitive Landscape of Storage Market by Shipment (Global), 2012 Source: Frost & Sullivan Regarding the product shipment, EMC, NetApp, and Dell are the top three vendors in the global market, whereas they occupied 28.6%, 19.6%, and 10.7% respectively in 2012. IBM, HP and Huawei exceeded HDS and Oracle and ranked the fourth, fifth and sixth largest vendor. Chart 10 Competitive Landscape of Storage Market by Revenue (China), 2012 Source: Frost & Sullivan Compared to the global market, there are more local vendors, such as H3C Copyright 2013 Frost & Sullivan 17 Frost & Sullivan Global Storage Market and Toyou, joined the competition in China market. In 2012, IBM, EMC and Huawei ranked the top 3, with market shares of 18.9%, 16.5% and 8.9% respectively, with the great brand awareness and customer base. As Huawei has showed an outstanding revenue growth in the past few years, the market share of Huawei is expected to keep rising in the future. As other local vendors, except for Huawei, still achieved relative small market shares, China market was still dominated by mainly international vendors. Chart 11 Competitive Landscape of Storage Market by Shipment (China), 2012 Source: Frost & Sullivan In the China market, IBM had not only the largest revenue share, but also the largest shipment, while it took 17.8% of the market share in 2012, followed by EMC, Huawei, HP, and HDS. Local vendors, represented by Huawei, H3C and Toyou have also shown a large increase in market share, compared to international player. As the leading local storage vendor, Huawei has experienced fast growth in market performance and market position in 2012, as it ranked top three vendors in the China market, regarding no matter revenue or shipment. In the SAN storage market, Dell was the leader in 2012. EMC followed Dell as Copyright 2013 Frost & Sullivan 18 Frost & Sullivan Global Storage Market the second in the market. In the NAS storage market, EMC dominated almost half of the world market. Because CAS is a relatively new technology that is still in the development stage, the market is well highly concentrated. EMC was the first company to propose the idea of CAS technology. Therefore, EMC basically dominates a large proportion of the market share for CAS stage market. Storage products with high effectiveness, guaranteed security and high fitness are significant to telecom carriers in the world, as the rapid development of comprehensive services and demand of integrated system. America is the largest carrier storage market in the world. And the Asia-Pacific market has been gradually expanding with the increased demand of medium and small size enterprises. EMC, NetApp, Huawei and other key storage vendors have all conducted active cooperation with global major carriers. The competitive landscape is analyzed as following. Chart 12 Competitive Landscape of Carrier Storage Market by Revenue (Global), 2012 Source: Frost & Sullivan Chart 13 Competitive Landscape of Carrier Storage Market by Shipment (Global), 2012 Copyright 2013 Frost & Sullivan 19 Frost & Sullivan Global Storage Market Source: Frost & Sullivan EMC dominants the global carrier storage market both in terms of revenue and shipment, with the percentage are 42.7% and 38.6% respectively. EMC has provided storage support and cloud service to several worldwide large carries such as AT&T, Orange, Verizon, and Vodafone, NTT euro, etc. NetApp ranks second and also established cooperative relationship with NTT euro and Verizon. Huawei has provided service support for both Chinese and foreign carriers. For instance, it won the bid to supply cloud computing related products in China Telecom’s purchase in 2012. Globally, Huawei takes third and fourth places respectively in the aspects of carrier storage shipment and revenue. 4.2 Competitiveness Analysis of Major Players Chart 14 Competitiveness Analysis of Major Storage Vendors (Global), 2012 Copyright 2013 Frost & Sullivan 20 Frost & Sullivan Global Storage Market Source: Frost & Sullivan As the market leader, EMC has the highest competitiveness regarding market performance, followed by NetApp while it ranked the second in the competitive landscape of global storage market in 2012. Meanwhile, with a revenue growth of over 30%, Huawei has become the storage vendor with the highest revenue growth, which represents an outstanding potential increase of its market performance. Product strength, as the support to the growth of revenue, reflects the capability of the vendors on product upgrade and innovation. Considering the market performance and the market recognition of the products, EMC, NetApp and Huawei have ranked on top regarding product strength. With strong research teams and large amount of R&D investments every year, EMC, Huawei and IBM are both highly competitive on technology capability compared to other vendors. Due to the devotion, these vendors are all highly efficient on product upgrade and technology innovation, which help them maintain the leading position on technology capability. With a long corporate history started from 20th century, EMC has accumulated Copyright 2013 Frost & Sullivan 21 Frost & Sullivan Global Storage Market abundant experience on storage project delivery, so as IBM and Dell. As a China-based vendor, although Huawei started its storage business in 2002, it has gained outstanding competitiveness on project delivery. It is mainly because that it has established an efficient project delivery process with other business, which has been successfully applied to their storage business. It is estimated that the energy consumption of a storage system takes about 30% to 40% of the total consumption of a data center. As a result, reducing energy consumption has gained more and more attention over years. Most of the large-scale vendors have already given many attempts, for example, Huawei has launched green solutions, HDS has focused on the establishment of green data center, and EMC has set up a “green team” in order to develop high efficient hardware devices. 4.3 Growth Matrix of Major Players Chart 15 Growth Matrix of Major Storage Vendors (Global), 2012 Source: Frost & Sullivan Copyright 2013 Frost & Sullivan 22 Frost & Sullivan Global Storage Market Taken the vendor’s market performance, technology capacity, product innovation capacity, and implementation excellence into account, EMC, NetApp, Huawei, Dell and IBM occupy the leading positions in the global storage market. Among the vendors, EMC, with its competitive advantages, possesses the strongest growth potential. In recent years, Huawei is dedicated in developing various storage products with high reliability, intelligence, and high performance to meet different customers’ requirements. Therefore, Huawei maintains good momentum of market growth. Compared to the five top vendors, other storage vendors have weaker overall performances. Chart 16 Growth Matrix of Major SAN Storage Vendors (Global), 2012 Source: Frost & Sullivan In the SAN market, Dell is performed as the market leader, while it has shown good market performance, as well as large growth potential. EMC, as a strong competitor in the storage market, has comparatively weaker performance and growth. It is also noticeable that due to the continuous innovation and development on technology and products, Huawei has gradually caught up Copyright 2013 Frost & Sullivan 23 Frost & Sullivan Global Storage Market with other potent international players, and presented ever-increasing growth potentials. NetApp, HP, and other players have reached a high level of technology capability but still have space for improvement in SAN market. Chart 17 Growth Matrix of Major NAS Storage Vendors (Global), 2012 Source: Frost & Sullivan In the NAS market, EMC has displayed comparative competitive advantages than other players. Vendors such as NetApp and Huawei have shown fast growth in the past few years, and are expected to emerge higher market shares in the near future. Compared to the above three vendors, other players have displayed weaker growth. Chart 18 Growth Matrix of Major CAS Storage Vendors (Global), 2012 Copyright 2013 Frost & Sullivan 24 Frost & Sullivan Global Storage Market Source: Frost & Sullivan With the Centera platform, EMC is the most well-known vendor in the CAS market, where it dominated a large proportion of market shares. Caringo, as one of the leading providers of CAS storage, has experienced fast growth over years. With its CAStor platform, Caringo has accumulated over 450 clients worldwide. Other large players, such as HDS, NetApp and Huawei, have strived to enlarge their CAS storage market share. In the network-based storage field, the idea of object-based storage system has been proposed to remedy the shortages of SAN and NAS. CAS, as one of the suitable technology, has been widely used in object-based storage system. Moreover, other storage vendors have launched their products based on other technology and structure. For example, Huawei’s OceanStor UDS adopted the ARM structure and distributed storage server technology, and provided a low cost but high performance object-based storage solution for massive data storage and cloud storage. The continuous technology progress and product innovation have helped Huawei to achieve fast growth in the sub-market. Copyright 2013 Frost & Sullivan 25 Frost & Sullivan 4.4 Global Storage Market Major Players Analysis 4.4.1 EMC EMC, founded in 1979, is one of the world-leading data storage companies. EMC provides solution for data storage and protection, content management, RSA information security and VMware virtualization. EMC currently cooperates with global institutions covering a various range of industries including public utilities and private companies. The clients of EMC consist of money center bank, major financial service companies, manufactures, health care centers, Internet service provider, telecommunication services providers and education institution. At present, EMC employs more than 40,000 staff members, in which over 8000 are research staff. The core storage products of EMC are the Celerra series and VNXe series. Celerra is the leading product of IP storage market. Celerra provides the feature of multi-protocol storage connectivity. The storage space is expanded from GB to hundreds of TB. The main functions of Celerra series include web-based management, virtual provisioning, dynamic file mobile and multi-path file system etc. Those functions form the distinguished advantages of Celerra containing real availability, high cost performance, and advanced information life cycle management. Another core product of EMC is the VNXe series. VNXe can support 6 to 120 disk drivers as well as 240 TB capacities so that it is able to satisfy increasing demand of complex organizations. The VNXe series feature outstanding capacity utilization, data protection and availability solutions and senior support functions. 4.4.2 NetApp NetApp, founded in 1992, is a world-leading storage solutions provider. It is the Copyright 2013 Frost & Sullivan 26 Frost & Sullivan Global Storage Market second largest fiber connection storage provider and first NAS、ISCSI storage provider. NetApp owns global enterprises customer base and over 180 hundred systems. It is equipped with around 10,000 staff in 138 countries. It aims for providing convenient, efficient and reliable design for storage. The NetApp storage solution covers professional hardware、software and service, offering seamless storage management for open network environment. The core products of NetApp are FAS3200 series and FAS6200 series. FAS3200 adopts brand new CPU and share system memory architecture and improve the flexibility of business. Self-management system can decrease delay time so that it can achieve business results more quickly. Another feature of FAS3200 is that the cluster mode can eliminate planned and unplanned halt through uninterrupted operating. FAS6200 series products are capable of providing high-quality applicability, expandability and optimal performance in view of flash memory to accelerate business operation. Similar to FAS3200, FAS6200 can realize uninterrupted operation. What is new to FAS6200 is that it can expand to 24 panel points using cluster mode, Data ONTAP. Clients can cluster different controllers according to size, year and characteristics. 4.4.3 Dell Dell is a publicly trading company that focuses in the industries of computer software, hardware and information technology consulting, services. Well known products of the enterprise include desktops, notebooks, servers, printers, smartphones and storage. With over 108,800 employees worldwide, the company is listed 38 in the Fortune 500 list. The newly introduced Dell Compellent Storage Center over turns the Copyright 2013 Frost & Sullivan 27 Frost & Sullivan Global Storage Market traditional idea of storage center being a static and not self-functioning object. Data center not only function as a storage for data, but also as an active management storage for data. The changes will strike to improve the effectiveness and efficiency of the enterprise. Based on the technology of Dell Fluid Data, the Dell Compellent Storage Center will be able to provide internal features for automatic management of data block and enterprise level consolidation in order to minimize total storage expense. Aiming for both security and simplicity, the Compellent Storage Center results in a more efficient enterprise level storage structure to not only raise organizational profitability but also adapt to the constantly changing market. Some outstanding features of Dell Compellent Storage Center include the following: Adaptable Hardware Through the use of Compellent Storage Center, companies can lower the risk of periodic technology elimination by increasing the ability to adapt to new technology. The mixed use of SSD, Fibre channel and SAS drive together in the same system can help to improve capacity on the same platform. The storage can also function both horizontally and vertically without stop in order to meet the demand of the business. Long Lasting Design for Software The installation of eternal licensed intelligent data management software in the Storage Center ensured the future usage of the product. Dell Compellent, also eliminated the waste capacity in traditional SAN. Dynamic Capacity The simplified features in the Dell Compellent can minimize the stopping time in case of application failure and maximize the completeness during disaster recovery. Copyright 2013 Frost & Sullivan 28 Frost & Sullivan Global Storage Market Long Lasting Design for Software The installation of eternal licensed intelligent data management software in the Storage Center ensured the future usage of the product. Dell Compellent, also eliminated the waste capacity in traditional SAN. Dynamic Capacity The simplified features in the Dell Compellent can minimize the stopping time in case of application failure and maximize the completeness during disaster recovery. 4.4.4 IBM IBM (International Business Machines Corporation), founded in 1911, is one of the world-leading information technology and business solution companies. It currently owns over 300 thousand staff and operates in over 160 countries. Presently, IBM still possesses most patents around the world. Its main products vary from software, systems, storage to some additional products like financing and security products. The core products of IBM storage are N series. The N series has its own release model that is different compared to other software packages. Data ONTAP can provide full-featured and multiprotocol data management for both block and file serving environment through N series storage operating system. At the same time, it simplifies data management through single architecture and user interface and reduces cost for SAN and NAS deployment. It is highlighted in the N series products that the products can accommodate capacity growth with scale-out performance for both random-access and streaming file workloads and can increase up to 40% with automated lifecycle management and migration to type. Copyright 2013 Frost & Sullivan 29 Frost & Sullivan Global Storage Market 4.4.5 Huawei Founded in 1987, Huawei becomes one of the leading global ICT solutions providers. To meet market demands, Huawei has established end-to-end capabilities and strengths across the carrier networks, enterprise, consumer, and cloud computing fields. With its customer-centric innovation and strong partnerships, Huawei endeavor to create maximum value for telecom carriers, enterprises and consumers by providing competitive ICT solutions and services. The enterprise business develops information and communications technology products and solutions such as enterprise network infrastructure, cloud-based data centers, enterprise information security, and unified communication and collaboration solutions. With the boosting development of big data and mobile trend, Huawei has developed multi-series of storage solutions applied to different scenarios for different customers. After more than ten years’ consistent research and development, Huawei has formulated its unique competitive advantages and owns a huge share of worldwide storage market. Huawei started its prepared research on storage technology in 2002 and released the first generation of 2Gb fiber SAN storage product in 2004. As the technology progressed, the first set of virtual storage products came out in 2008, and the first solid storage system released in 2011. Besides, the business strategy and product idea have upgraded accordingly. Currently, the basic idea of Huawei storage solutions is to provide “intelligent and convergent storage”. "Intelligent" refers to intelligent elastic architecture, intelligent data distribution, and intelligent management and scheduling. "Convergent" refers to protocol convergence, product technology convergence, and lifecycle management convergence. Copyright 2013 Frost & Sullivan 30 Frost & Sullivan Global Storage Market The storage solutions and products cover unified storage, solid state drive (SSD), big data NAS, data protection, and cloud storage fields. With its high reliability, intelligence, and high performance, disk storage system is developed to meet customers’ requirements for centralized storage, high-availability clustering, data sharing, etc. High-performance clustered NAS series product and EB level scalability and cost-effective massive storage system are developed to cope with big data and cloud storage requirements. Moreover, data protection systems provided by Huawei include backup storage and virtual tape library series so that to meet operators’ requirements for data archive/backup, disaster recovery and cloud storage backup. Huawei’s rapid development of storage technologies and products has a significant impact on the global storage market. So far, its storage products have over 2000 customers worldwide. The application industries cover government, telecom, media, finance, energy & power fields and many large, medium and small enterprises. Its customers include the governments of Brazil, Polish, Russian and Spain, Vodafone, Telefonica, CCTV, Phoenix TV, ICBC, Copel, etc. For instance, in China's Golden Auditing Project, Huawei storage has provided rigorous protection and disaster recovery service; N8000 storage product has been used in the IMG digital media platform to meet the demand of network. 4.4.6 HP The Hewlett Packard Company, more commonly known as HP is an American firm headquartered in California, USA. The company is known for providing technology products such as computer hardware and supporting services such as software solutions to customers. Copyright 2013 Frost & Sullivan 31 Frost & Sullivan Global Storage Market HP has various product lines within the storage department of the company. Each product line is designated to serve a particular category of customers or solve a specific problem. HP Converged Storage Focusing on both structured and unstructured data, HP has built the line for achieving virtualization and providing cloud services. Products in this line include but not limited to HP 3PAR StorServ Storage, HP StoreVirtual Storage, HP StoreOnce Backup and HP StoreAll Storage. All of the above products aim at optimizing a specific area. For example, the HP 3PAR StoreServ Storage is particular introduced to optimize all flash arrays. Simply Store IT: Storage for Small and Midsize Businesses For small and midsize firms, there is no need to purchase enterprise level storage center. Requirements such as data protection, backup and file sharing can be achieved through storage solution under the Simply Store IT product line. Products under this line include HP MSA Storage, HP StoreVirtual Storage, HP StoreEasy Storage and HP Storage Media. All of the products listed above focus on efficiency, security and availability. The idea of simply address files and application is a goal for all storage systems. Software and Infrastructure HP offers a comprehensive selection of SAN infrastructures and storage software products. Under this product line, products such as HP StoreFabric Storage Networking and HP Storage Software focus on integrating storage system that emphasis on optimizing server environment and converging new designs with pervious investments. Copyright 2013 Frost & Sullivan 32 Frost & Sullivan Global Storage Market 4.4.7 HDS Hitachi Data System, for short as HDS, is a company that provides a full range of storage system products. As a wholly owned subsidiary of Hitachi Ltd, the company is centered in California, USA, but has customers worldwide through direct and indirect channels in more than 170 countries. Over 50% of the company’s customers are Fortune 100 companies. There are three products under the storage system category of the company’s product. The storage system differentiates itself from others by focusing on transforming data into valuable information, doing so by making raw data more accessible and simpler to manage. As one of the leaders in the storage system market, HDS offers a centralized and virtualized platform for files and data blocks In order to meet the needs of different customers. Hitachi Unified Storage 100 Family This product is a combination of file, block, and object storage which focuses on balancing scalability and meeting customer requirements. One feature of the product is high density storage, which is designed to reduce carbon footprints. One benefit of the product is the automated data management technology that it is dynamically working. Hitachi Unified Storage VM The product focuses on improving the productivity of the management of the data through more efficient and simplified methods of management. Aiming to provide high service and better performance, the product virtualizes, manages and unifies all data type. Hitachi Virtual Storage Platform This product is known as a powerful enterprise storage system. While the Copyright 2013 Frost & Sullivan 33 Frost & Sullivan Global Storage Market emphasis is been placed on availability of data to customers, virtualization technology of this product enables the migration and consolidation of data. Copyright 2013 Frost & Sullivan 34 Frost & Sullivan 5 Global Storage Market Industry Development Trend 5.1 Market Development Trend The world enterprise storage systems market showed its strength and resilience in customer revenue in recent years due to the rebounding from global economic recession. The major driving force was recovery in end-user spending in overall IT infrastructure. SAN and network attached storage (NAS) represent the two fastest growing material installation segments of the worldwide enterprise storage systems market from both revenue and terabyte perspectives. Spending on SAN and NAS will continue to experience strong growth driven by a major shift of storage deployments toward IP-connected systems. Apart from the famous brand, there will be a noticeable shift in end-user spending to the entry level and midrange price brands driven by increasing adoption of modular system architectures. Emerging market segments and technologies will have a profound impact on the storage systems market landscape in the next five years. Among them are emerging customer segments such as content depots and cloud storage providers, emerging data use cases such as business analytics and medical imaging, and emerging solution bundles such as application appliances. With the rapid development of IT system of enterprises, the global market is entering into a new stage. In 2012, 65% enterprises’ application completed IT virtualization reform to some certain extent. Virtualization requires integrated resource management and the establishment of data sharing platform. It is reasonably assumed that space is deployed by demand and elasticity is expanded smoothly. The future development of global co-ordination depends on data management in the following ways. The first is global sharing that supports WAN accelerator. Copyright 2013 Frost & Sullivan 35 Frost & Sullivan Global Storage Market Secondly, storage management is going to be simplified and take the capabilities they need into the field in order to satisfy future growth of enterprises. The data, without doubt will keep informed in real-time to increase efficiency and lower the cost. 5.2 Product / Technology Development Trend In response to the customer demand and industry trend, storage technology and product are adjusting to cater to the current need. 5.2.1 Intellectualization Trend In terms of system architecture, the scale up architecture will turn into a unified scale out structure. In the future storage market, product framework tends to support distributed resilient framework and realize capacity expansion intelligently as businesses grow. The traditional data layout is based on physical disk unit using the RAID technology. Now, the layout is turning into two-layer virtualization technology based on logical disk. Thereby, reconstruction speed can be increased and more flexible QoS support in virtualization environment can be realized. Besides, storage product with built-in management scheduling module facilitates more direct system sensory ability. Furthermore, data display module tends to be more lightweight and mobile. 5.2.2 Integration Trend To meet the demand of comprehensive service bearing, storage products with multi-interface that can support SAN, NAS or Object will obtain higher market share. On a broad view, there used to be product split between high-end and low-end products. In the near future, high, middle and low-end products will integrate Copyright 2013 Frost & Sullivan 36 Frost & Sullivan Global Storage Market through technical extension and platform sharing. In the past, different and independent products require human inference to complete data flow between different products. The prospective management will rely on only one single product to support storage, analytics and archive functions so that the data can be flowed without restriction. What’s more, there is a strong integration trend among technologies in the aspects of storage, calculation, security, network, etc. As the demand varies and increases, integrated product will attract more users. Copyright 2013 Frost & Sullivan 37