Computer Storage Technology - A Rapidly Growing Field Dependent On Ever-Increasing International Information Processing And Storage Usage

The computer storage sector produces tape, optical, and magnetic storage and retrieval products for computer platforms. These products range from the basic desktop computer floppy and hard disk drives to independent storage management systems such as advanced tape library and autoloader systems implemented in major enterprise networks.

Demand for extra storage capacity and speed has risen sharply, as microprocessors have become faster, software applications have become more resource intensive, and network computing has become more prevalent. Attempts to augment processing power and give users additional features have made the normal new software application consume vastly more storage space than former versions. On personal computers, storage needs have further evolved and multiplied as a consequence of rising multimedia features and content, for example DVD movies and downloadable music on the Internet. Meanwhile, corporate systems needed to contend with escalating storage and processing wishes from internal users, as well as from the Internet.

Shipment values for computer storage appliances and equipment like tape libraries, which equaled $9.0 billion in 2000, decreased to $8.2 billion in 2001. At that time, approximately 66 companies competed in the domestic market. Even during the myriad forces inspiring demand for storage devices, the industry, like other computer hardware segments, has been adversely affected by aggressive price competition. Such pressures have encouraged significant consolidation throughout the industry and have prompted cost cutting at several storage device vendors. In addition to increased price competition, the market for storage devices was prone to a weak economic climate in the early 2000s. This laid out challenges across practically every product group in the computer industry, as manufacturers faced decreased spending and certainty levels in both the consumer and corporate sectors.

The computer storage industry continued to deal with both pressures and opportunities associated with storage outsourcing services, or storage service providers, or SSPs, at the start of 2000s. These remote services sell storage space and management applications that clients can simply connect to and use, allowing companies to avoid acquiring and maintaining storage hardware and software themselves. Starting in early 2000s, the nascent SSP field was altering how storage devices are applied and marketed. It also presented an opportunity for storage equipment companies to branch into services. By 2001 telecommunication giants like World Com and AT&T were involved in this sector. Internationally, IDC, a company specializing in technology intelligence and industry analysis, forecast spending on SSPs to grow from $150 million in 2000 to $10.5 billion in 2005, according to Computing Canada. This increase reflected a compound annual growth rate of over 134 percent.

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