LONDON--(EON: Enhanced Online News)--According to the latest procurement intelligence report from Technavio, the global market for IT storage services is expected to grow at a CAGR of 7.6% over the next five years due to increased demand from countries such as India, China, and Australia, which produced, archive, and process large amounts of data.
“During the forecast period, the IT storage services market will witness an exponential rise in available data due to the accumulation of structured and unstructured data”
The research report titled ‘Global IT Storage Services: Procurement Intelligence Report 2016-2020’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“During the forecast period, the IT storage services market will witness an exponential rise in available data due to the accumulation of structured and unstructured data,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “This will lead to growing demand for IT storage services from entities such as financial institutions, retail outlets, healthcare establishments, government institutions, telecommunication industries, manufacturing industries, IT companies, and research and consulting services,” adds Angad.
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Cost saving opportunities in the IT storage services market
The adoption of various cost-optimization levers helps buyers of IT storage services realize direct cost savings and enhance category management and value benefits (including reduced procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the IT storage services market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
Use of technology for erasure coding, object and big data storage, copy data management, and disaster recovery can help minimize costs, sometimes up to 12% of the total category spend.
A significant increase of structured and unstructured data generated has led to the need for high storage capacity, thereby making capacity allocation crucial for buyers. Effective allocation of capacity can be achieved by associating with suppliers that have adopted technologies such as Array Thin Provisioning, which monitors consumption patterns and forecasts the need for addition of capacity.
Adoption of negotiation strategies saving aspects
Categorization of negotiation levers as quick-wins, and strategic opportunities are critical in the global IT storage services market. Technavio analysts suggest engaging with suppliers who ensure low latency and high bandwidth to increase the efficiency of their operations.
Buyers can lose data due to incidents such as accidental deletion of files that do not have a backup, virus attacks, damage to operating systems or hard drives, and power failures. Therefore, buyers prefer to engage with suppliers that can ensure effective recovery of data in the event of system malfunctions, disruptions in electrical supply, or disasters.
Bundling of services saving aspects
One of the most opportunistic strategic cost saving levers in the global IT storage services market is the integration of consulting and other value-added services with necessary software and hardware offerings.
The risk of data theft has increased due to a rise in instances of cybercrimes and cyberattacks. Therefore, it is imperative for buyers to engage with service providers that can ensure the security of data. Thus, buyers prefer to engage with suppliers that can provide services such as end-to-end encryption (encryption at rest and in transit), which ensures that the data is in an encrypted format till it reaches its final destination, where it is decrypted.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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