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Computer Storage Products - A Rapidly Growing Field Dependent On Rising International Information Processing And Storage Demands
The computer storage business develops magnetic, optical, and tape storage and retrieval devices for computer equipment. These products range from the typical desktop computer floppy and hard disk drives to unique storage control systems such as complex tape library and autoloader systems utilized in sizable enterprise networks.
The call for increased storage capacity and functionality has risen sharply, as microprocessors have developed faster, software applications require more computer resources , and network computing has become more pervasive. Attempts to harness processing power and provide users greater capabilities have made the typical new software application demand vastly more storage space than prior versions. On personal computers, storage expectations have further developed and multiplied because of growing multimedia features and content, like DVD movies and downloadable music on the Internet. At the same time, corporate systems had to deal with escalating storage and processing demands from internal users, and additionally from the Internet.
Shipping values for computer storage devices and equipment like tape libraries, which reached $9.0 billion in 2000, went down to $8.2 billion in 2001. At that time period, some 66 companies competed in the domestic market. In spite of the myriad forces revitalizing demand for storage devices, the industry, like many computer hardware groups, has been hurt by ruthless price competition. Such pressures have brought substantial consolidation within the industry and have introduced cost cutting at several storage device manufacturers. In conjunction with increased price competition, the market for storage devices was vulnerable to a weak economic climate in the early 2000s. This presented challenges across almost every product sub niche in the computer industry, as manufacturers dealt with reduced spending and assurance levels in both the consumer and corporate sectors.
The computer storage industry continued to deal with both problems and opportunities related to storage outsourcing services, or storage service providers, or SSPs, in the early 2000s. These web-based services provide storage space and management products that subscribers can simply connect to and use, enabling companies to avoid buying and maintaining storage hardware and software themselves. In the early 2000s, the new SSP field was changing how storage devices are used and marketed. It also presented an opportunity for makers of storage equipment to branch into services. By 2001 telecommunication corporations like World Com and AT&T were competing in this sector. Worldwide, IDC, a leading consultant in technology intelligence and industry analysis, forecast spending on SSPs to rise from $150 million in 2000 to $10.5 billion in 2005, as reported by Computing Canada. This gain reflected a compound annual growth rate of nearly 134 percent.
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