2 min read

Earning Growth Opportunities in Data Protection

By Shaun Walsh on January 23, 2019

Topics: Industry News

I ask you to forgive the market data gobbledygook that is in the next paragraph and to please take a few minutes to digest it as a basis for the growth opportunity in data protection. The data below confirms three things that define great opportunities for new vendors and channel partners.

  1. Growing markets in transition create high-margin opportunities
  2. Shifts to cloud, as-a-service and unstructured data management require new vendors
  3. Scale of data growth will create new services and management opportunities

In the Data Age 2025 white paper, by IDC, they forecast that by 2025 the global datasphere will grow from 16 zettabytes (ZB)—that is a trillion gigabyte— to 163 ZB. With a 10X increase in global storage, data protection will continue to be a growing opportunity for the channel. In December 2018, IDC also released their worldwide data protection and recovery (DP&R) software forecast for 2018–2022. The data protection and recovery software market is expected to show continued solid growth through 2022. The CAGR of 4.7% for 2018–2022 forecast period is lower and they see a significant shift to public cloud service (PCS) data protection models which will grow much faster at a 10.7% CAGR. They also expect total market revenue will grow from $6.9 billion in 2017 to $8.7 billion in 2022.

These numbers tell us a few simple truths.

  • 10X growth in data means up to 30X in data protection capacity for backup, archive and project specifics copies of data

  • Cloud and as-a-Service models are what customers are looking for in next generation solutions

  • The scale of data growth will require solutions that manage, index and search data analytics at levels previous data protection solutions (Veritas and Commvault) will fail to deliver

What should a channel partner do to capitalize on this fundamental architectural change in the market for data protection for on-premises and cloud infrastructures?

  1. Bridge the Architectural Gap - Use your trusted advisor relationship to identify the gaps that legacy vendors have today related to the creation of data silos, inability to scale to billions of files and ZB of storage, and the ability to scan, index, and share data openly.
  2. Address the Innovation vs. Operational Cost Dilemma - The real risk to competitive advantage is when resources and budgets being consumed by extending legacy solutions beyond their true strategic life. It is easy to take the PO for a renewal vs. helping clients pilot a new innovation course, but in the end it is what keeps you a trusted advisor and keeps competitors out of your account.
  3. Challenge New Vendors to Prove Their Value - New vendors are knocking on your door, Igneous included. Give them tough problems to solve and make them earn their way into the the new innovations you propose to clients.

Igneous sees material growth opportunities in the data protection market, which is why our founders created the company. In our State of Unstructured Data report, over 200 IT leaders shared the challenges they see for data protection and how the type of innovation they are looking for in their next generation of solutions. We hope you will join us and capture a growing market opportunity and drive innovation in 2019.

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Shaun Walsh

Written by Shaun Walsh

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