Despite what IDC calls a "variegated market of drivers and inhibitors", storage software purchasing in Australia has continued its barnstorming run in 2001, growing 41 per cent year on year.
A tough local economic and IT climate, a worldwide economic slump, the shelving of a number of enterprise application implementations and other IT projects that traditionally drive storage adoption, as well as the events of September 11, could not dampen the increase in storage software spending.
According to recently released IDC research, the overall Australian storage software market grew 37 per cent from $US31 million in the first half of 2001 to $US43 million in the second half. The strongest market size increases were noted in storage resource management software and other storage software, which grew at 27 per cent and 109 per cent, respectively, from 2000.
Although IDC analyst Grace Lai expects a market correction to occur within the next few years as management software becomes widely pervasive, from the channel's perspective storage software is the sweet spot. "Storage software is the differentiator," she said. "It's one of those areas where margins are made."