Storage area networks are getting most of the headlines, but International Data Corp says that the less fashionable network-attach storage market is set to explode, growing from revenue of $540m in 1998 to $5.1bn by 2003, a growth rate of around 54% per year.
The fastest growth will come from mid-range systems costing between $6,000 and $25,000, according to IDC’s new report. Currently, the highest growth has been seen in systems costing over $25,000, as companies at the low-end of the market have struggled with product volume and access to market issues. Network Appliance Corp is the dominant company, accounting for almost 40% of total revenues in 1998. Auspex Systems Inc was its nearest competitor with 21% of market revenue shares.
Market development is set to accelerate later this year, says IDC analyst Robert Gray, when first tier server, disk drive and networking suppliers enter the NAS market. Dell Computer Corp, through its OEM partnership with Network Appliance, began selling its first files servers in April. Network Appliance also has an OEM relationship with Fujitsu Ltd. Meanwhile Compaq Computer Corp has introduced its TaskSmart caching appliance, and is expected to ship a file server based on similar technology by the end of the year. Micron Electronics Inc’s NetFrame division, EMC Corp and Quantum Corp are also interested in the NAS market.
