Computer Storage Equipment - A Rapidly Transforming Field Dependent On Increasing Global Information Processing And Storage Requirements

The computer storage industry develops magnetic, tape, and optical storage and retrieval appliances for computer systems. These equipment range from the basic desktop computer floppy and hard disk drives to stand-alone storage control systems such as sophisticated tape library and autoloader systems used in sizable enterprise networks.

The requirement for greater storage capacity and performance has risen quickly, as microprocessors have become faster, software applications consume more processor resources, and network computing has become more pervasive. Attempts to tap into processing power and offer users greater functionality have made the ordinary new software application require vastly increased storage space than former versions. On personal computers, storage requirements have further changed and multiplied as a result of expanding multimedia features and content, like DVD movies and downloadable music on the Internet. In the mean time, corporate systems were required to cope with expanding storage and processing wishes from internal users, in addition to from the Internet.

Shipping values for computer storage gadgets and equipment like tape libraries, which totaled $9.0 billion in 2000, went down to $8.2 billion in 2001. At that point, around 66 companies competed in the domestic market. Despite the multiple forces inspiring demand for storage devices, the industry, like similar computer hardware groups, has been harmed by fierce price competition. Such pressures have brought essential consolidation into the industry and have brought cost controlling at several storage device vendors. Along with increased price competition, the market for storage devices was vulnerable to a weak economic climate in the early 2000s. This introduced challenges across virtually every product sub niche in the computer industry, as manufacturers encountered less spending and confidence levels in both the consumer and corporate sectors.

The computer storage industry continued to meet both pressures and opportunities involving storage outsourcing services, or storage service providers, or SSPs, in the early 2000s. These internet-based services offer storage space and management products that clientele can simply connect to and use, making it possible for companies to avoid purchasing and running storage hardware and software themselves. Starting in early 2000s, the budding SSP field was changing how storage devices are employed and marketed. It also presented an opportunity for storage equipment manufacturers to branch into services. By 2001 telecommunication corporations like World Com and AT&T were taking part in this sector. Around the globe, IDC, a leader in technology intelligence and industry forecasts, forecast spending on SSPs to grow from $150 million in 2000 to $10.5 billion in 2005, based on Computing Canada. This gain reflected a compound annual growth rate of about 134 percent.

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