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All-flash storage, domestic external storage market grows rapidly due to price drop
Korea IDC: Domestic All-Flash Storage Grew 43.2% Last Year
All-Flash Market Size of 89.3 Billion Won in 2016… Impact of Declining Flash Costs
The all-flash storage market has grown rapidly due to falling flash media costs and competition among vendors to secure new industry references.
According to the domestic all-flash and hybrid flash array market report recently published by IDC Korea (CEO Hong Yoo-sook), the domestic all-flash storage market last year was tallied at KRW 89.3 billion, a 43.2% increase from the previous year.
Reference photo: Kaminario, an all-flash storage specialist
Last year, the hybrid flash storage market size was tallied at KRW 217.5 billion, up 4.4% year-on-year, accounting for 45.6% of the external storage market. Hybrid flash storage has continuously generated demand due to its strengths in supporting both processing speed and high capacity with a mixed configuration of flash and HDD.
The expansion of the all-flash storage market was largely influenced by the decline in flash media costs. Last year, the domestic all-flash storage media price decreased by 31.1% year-on-year due to the increase in flash processing speed and capacity, and was recorded at an average of KRW 4,219 (KRW/GB). The hybrid flash storage media price decreased by 16.5% year-on-year and was recorded at an average of KRW 800 (KRW/GB). It is analyzed that this decrease in media cost will increase the efficiency (ROI) of investment in all-flash storage in big data, IoT, cloud, and edge computing.
2016 Domestic External Storage Market (Unit: 10 billion won)
In addition, competition among companies for new industry references has contributed to the expansion of the flash storage market. Key examples include next-generation system projects for banks, strengthening of ERP infrastructure and smart factory projects in the manufacturing market, expansion of infrastructure for the government integrated computer center, expansion of artificial intelligence and big data applications for the medical industry, and construction of cloud infrastructure for portal and telecommunications operators.
Lee Deok-woong, a researcher in charge of enterprise storage market research at IDC Korea, said, "In the past, all-flash storage systems were difficult to introduce due to high costs even if people wanted to purchase them, but last year, they grew rapidly in the domestic external storage market due to the decline in flash costs." He added, "The all-flash storage market is expected to continue to grow in the external storage market as an essential infrastructure resource that supports low costs and high performance and supports next-generation infrastructure environments such as IoT, edge computing, big data, and cloud."
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