Central and Eastern European External Storage Market Shows Record Growth in Third Quarter of 2011, Reports IDC

Prague, December 16, 2011 – Despite the unfavorable economic conditions in Central and Eastern Europe, Middle East and Africa (CEMA), external enterprise storage market continued to thrive in Q3 with Central and Eastern Europe leading the trend by 25.8% annual growth. According to IDC's Disk Storage Systems Quarterly Tracker, storage capacity increased by 68.6% year on year to 216.7 petabytes while revenue climbed to $424.2 million, a 17.9% growth over the same quarter in 2010. Both indicators slowed down, revealing a trend toward "normal" pace of market development after the economic recovery period.

As predicted by IDC, small and medium businesses increased their demand for storage, however, not as actively as expected due to the burden imposed by many local governments' austerity economic measures across the region. The enterprise sector remained the strongest storage investor in spite of spending slowdown in line with the market.

"Cloud-based storage became a more visible option, especially in Central and Eastern Europe, as SMB clients began seriously considering cloud services as an alternative to traditional IT deployment in markets like Czech Republic, Romania, Russia, etc." said Pavel Roland, research manager, Storage Systems, IDC CEMA. "Consecutively, this trend boosted the midrange storage solutions designed for the cloud."

Both EMC and HP increased their shares of external storage revenue to 37.0% and 19.8%, respectively, compared to Q2 due to large deals in telecommunication and banking sectors in some of the largest CEMA markets. EMC was very successful with its multi protocol VNX/VNXe systems. IBM ranked third with 17.3% of external storage spending, descending one place from Q2.

"The explosion of file data started affecting the storage market more directly in 2011 and particularly in the third quarter." said Marina Kostova, research analyst, Storage Systems, IDC CEMA. "Systems that allow simultaneous block and either file and/or object access to storage capacity on a singular hardware platform or an integrated architecture with a common management interface grew five times faster in annual terms than the non-multi-protocol storage solutions."

IDC's Disk Storage Systems Quarterly Tracker delivers timely intelligence and an inclusive database detailing changes and trends in CEMA storage market. The tracker enables users to view data by volume, value, terabytes, country, year, quarter, vendor, product family, model, location, topology, installation, protocol, redundancy, storage class and priceband.

For more information on IDC research, please contact Tatiana Hinova (thinova@idc.com, +420 221 423 140).