Storage Hardware Sales Up, IT Budgets On Hold

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Posted on Thursday, August 16, 2018

Back in February, Morgan Stanley released a report that shocked most IT industry analysts. According to their predictions, sales of on-premises hardware would increase this year– possibly growing by more than 10%. 

With cloud dominating most short-term IT strategies, no one expected to see any significant increases at all, but nothing is quite as it seems.

Who is buying new storage systems?

Undoubtedly a decent percentage of these new sales are going to replace or augment traditional on-premises data centers. The vast majority, however, is being bought by hyperscale cloud platform providers.

After all, someone has to buy the physical storage even when you move your data and applications to the cloud.

IT budgets have “paused”

The same Morgan Stanley memo also reports that IT budgets have stagnated as businesses try to decide on a storage strategy moving forward. Most believe that cloud is the future of their IT operations and storage, but they are still trying to understand how the technology fits into their operations, particularly as AI and IoT place pressure on storage for immediate access.

Until they can define a clear roadmap for the future, these organizations are on hold, committing to neither cloud nor new on-site hardware.

Caught without coverage?

For any organization that finds itself in this position, there is a real danger that their hardware maintenance contracts will expire before they decide how to migrate their systems. Assuming the storage arrays are not officially EoSL, they may be able to renew with the OEM, although the cost will be eye-watering.

CDS can help, however. Rather than charging for a full year, our flexible contract terms can be tailored to provide interim coverage for as long as you need it, and invoiced monthly, quarterly, or annually. By partnering with CDS you can protect your systems while a longer-term data storage strategy– cloud or otherwise– is planned and put into action properly.

We are there to provide support and maintenance during data migration and handover to ensure your data is always available and operations continue uninterrupted.

To learn more about our interim maintenance services, please get in touch.

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