On average, sales of storage solutions (including SAN and NAS) accounted for 17 percent of the typical solution provider's annual revenue in 2001, according to a December 2001 survey of 306 solution providers in North America by Reality Research and Consulting. If you consider that the typical solution provider generates $145,900 in annual revenue per employee, storage-related sales would account for nearly $25,000 in revenue per year, per employee. Of that amount, NAS and SAN together account for 26 percent, or nearly $6,500 in sales annually per employee
Looking ahead, 7 out of 10 solution provider organizations forecast that their sales dollars from storage solutions will be rising in 2002. Those expecting an increase estimate that their customers' investment in storage solutions will move up an average of 19 percent above 2001 storage-related investment levels. Highly publicized viruses and hacker incidents are cited by solution providers as the key driver behind increased customer investments in storage solutions.
This increase in spending on storage by customers will raise the total amount of storage capacity sold by solution providers in 2001 by an estimated 37 percent above the 2001 level. The average storage capacity sold, 7.15 terabytes, is up from 5.23 terabytes in 2001.
Not surprisingly, as customers increase the amount of storage capacity, more of the storage infrastructure is being managed off-site. This is opening up service opportunities for solution providers.