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The Storage Economist

Just another BRIC in the wall…

by David Merrill on Jul 20, 2009

A recent IMF report outlined GDP projections for countries and regions of the world for 2009 and 2010. They concluded that ..”the global economy is beginning to pull out of a recession unprecedented in the post-World War II era, but stabilization is uneven and the recovery is expected to be sluggish”.

Some interesting results for Brazil, Russia, India and China (hence the BRIC analogy), is that these economies are expected to grow much faster than the US economy over the next 18 months. My current trip has me in Asia, Australia and ASEAN this month, with some quick observations about IT and Storage spend from this region of the world given the IMF projections:

  • Growth rates in storage and IT spend is much higher than I tend to see in other parts of the world. Medium and large clients projecting 80-150% year on year storage growth
  • DR investment and looking at new strategies (3 DC) for multi-country recoverability is still vibrant
  • With high growth rates, much more focus now on better utilization. I have noticed in years past that with low cost of labor it was easier to throw people at poor utilization metrics. That has now changed and proactive methods and management functions are being put into place for higher utilization
    • Virtualization
    • Thin provisioning
    • Zero page reclaim
    • De-duplication
  • There is still a lot of emphasis on mid-range storage, and the inheritance of enterprise-class functionality is being well received in mid-range products. Storage sprawl with dozens or hundreds of mid-range systems (and the accompanying SAN infrastructure) is forcing new reviews of medium-to-large storage architectures
  • Seems like every meeting I have been in this week and last, the discussion turns to power, power, power. Carbon footprint of storage, total kVA consumption, data center floorspace seems to be a keen point on many minds. As we discuss new architectures and the resulting power consumption (per TB basis) for these architectures, the response is always very positive.

So we may look towards the east (sounds like an old doobie brothers song) for IT emphasis and storage priorities over the next few years. These points are not fundamentally different than what we see in the west, only that the growth and spending in the east may have an impact on adoption and technical leadership.

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David Merrill - The Storage Economist

David Merrill
Chief Economist

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