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Computer Storage Equipment - A Rapidly Developing Field Dependent On Rising International Information Processing And Storage Requirements
The computer storage business manufactures magnetic, optical, and tape storage and retrieval devices for computer systems. These items range from the typical desktop computer floppy and hard disk drives to stand-alone storage management systems such as complex tape library and autoloader systems utilized in large enterprise networks.
The call for increased storage capacity and performance has increased sharply, as microprocessors have developed faster, software applications consume more processor resources, and network computing has become more prevalent. Attempts to harness processing power and provide users more capabilities have made the typical new software application require vastly far more storage space than prior versions. On personal computers, storage requirements have further changed and multiplied because of growing multimedia features and content, such as DVD movies and downloadable music on the Internet. At the same time, corporate systems had to cope with rising storage and processing demands from internal users, in addition to from the Internet.
Shipment values for computer storage devices and equipment like tape libraries, which reached $9.0 billion in 2000, fell to $8.2 billion in 2001. At that time period, some 66 companies competed in the domestic market. Despite the many forces revitalizing demand for storage devices, the industry, like similar computer hardware segments, has been hurt by ruthless price competition. Such pressures have prompted substantial consolidation within the industry and have brought cost trimming at several storage device manufacturers. Along with increased price competition, the market for storage devices was prone to a weak economic climate in the early 2000s. This presented challenges across almost every product segment in the computer industry, as manufacturers dealt with reduced spending and confidence levels in both the consumer and corporate sectors.
The computer storage industry continued to encounter both problems and opportunities involving storage outsourcing services, or storage service providers, or SSPs, at the start of 2000s. These web-based services provide storage space and management tools that subscribers can simply connect to and use, enabling companies to avoid purchasing and operating storage hardware and software themselves. In the early 2000s, the budding SSP field was altering how storage devices are used and marketed. It also presented an opportunity for makers of storage equipment to branch into services. By 2001 telecommunication industry leaders like World Com and AT&T were competing in this sector. Worldwide, IDC, a leader in technology intelligence and industry assessment, forecast spending on SSPs to rise from $150 million in 2000 to $10.5 billion in 2005, based on Computing Canada. This increase reflected a compound annual growth rate of nearly 134 percent.
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