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Storage services spending moderate, IDC says

Storage services spending moderate, IDC says

IT spending on storage services will grow moderately over the next few years, a new study from International Data Corp. (IDC) says.

The amount of money IT managers spend on storage services such as consulting, integration, management and support will increase by just over 6 percent between now and 2005.

IDC blames this slow growth on the economic recession, a slowdown in IT spending, slower than expected storage growth and the commodization of storage hardware.

The study indicates that storage implementation, deployment and integration services will take the largest portion of the storage services pie, specifically the integration of storage area networks. IP storage -- storage that uses IP as its transport method -- as it is more widely adopted, will become a bigger part of the market. Consulting on direct-attached storage will decline.

IDC expects growth to accelerate next year as companies begin to spend as much as they did in the late 1990s before the dot-com bubble.

The IDC study further shows that the storage service provider market, viewed by some observers as a threat to storage infrastructure vendors, has shrunk to a few companies that focus on narrowly defined storage services such as backup and recovery of data.

The United States will spend over US$13 billion on storage services in 2005.


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