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To: Proud_Infidel who wrote (43633)3/13/2001 9:10:38 AM
From: Proud_Infidel  Respond to of 70976
 
Computer Storage Industry to Be Bullish

By Kim Deok-hyun
Staff Reporter

On top of rapid growth worldwide in the computer storage market, the local storage industry is showing the strongest sales performance in two years.

In a recent report, Dataquest, a market research agency, said the storage market will experience strong growth this year, with $37 billion worth of revenues expected. Dataquest predicts revenue to reach nearly $67 billion by 2004. The worldwide server industry had revenues of $53.8 billion in 2000, an increase of 11 percent over the previous year's revenue.

The report said that demand for computer storage in the local economy is high, especially among e-business, front-end Internet and application design companies.

The local hard drive market was estimated at around 800 billion won last year. It benefited from an aggressive marketing strategy for operating systems, which require more storage, and advantageous price and performance ratios on lower-end systems. Revenues are expected to surpass 1 trillion won this year.

``Data storage growth, driven by the use of Web-based applications, multimedia data and data warehousing implementations, is increasing the demand for better backup and recovery tools,'' said Lee Wang-sang, an Internet analysts at LG Investment and Securities. ``As a result of this strong demand, local computer storage vendors also increased their sales outlook.''

The report recommended that companies should continue to focus on the storage management environment, consolidating the management and deploying networked tools to expand the reach of the small staffs available to manage the growing storage resources.

The data storage market is growing beyond all expectations. Dataquest analysts said that with such strong growth vendors need to add infrastructure to allow them to effectively manage and maintain control as the company grows and the business spreads to other geographies.

"Storage subsystem vendors are bringing sizable research and development budgets to the effort of improving management tools, adding to the resources of the traditional storage software vendors," it said.

The industry is right on track for the company's forecast 22.2 percent annual growth rate by 2004, while personal computer growth rate is projected 5.9 percent.

In a similar move, the worldwide storage management software market will continue to thrive, with revenue forecast to be $14.7 billion in 2004.

Although the data management segment represents 53 percent of the overall market, the company said, strong growth in the storage infrastructure segment, led by data replication products, and in the enterprise storage resource management segment will push data management to only 46 percent of the market by 2004.

As for a technological aspect, the storage industry will migrate from using special-purpose communication technologies to link systems, the same protocol that governs the Internet, over the next two or three years, industry sources said.

The transmission control protocol and Internet protocol (TCP/IP) protocol, the communication standard that underlies the Internet, will begin to play a larger part in the storage industry, but still, the shift in how storage systems communicate with one another is a burning one for the storage industry.

kdh@koreatimes.co.kr