SAN and NAS Market Conditions

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.

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