Data is the pulse for business. Access to timely and relevant information is crucial for making strategic business decisions. Yes, IT budgets have been slashed, but it is important for businesses to invest in the right IT infrastructure in order to have the competitive edge. Businesses continue to spend on storage for two main reasons: data/business growth and compliance/regulatory requirements.

Sectors like BFSI, Government, Telecom, and FMCG continue to grow, and are the obvious IT spenders. The BFSI sector continues to expand with the addition of new customers and increased business. Large banks that deployed storage sometime ago are now upgrading its infrastructure.

“BFSI sector is experiencing a rapidly increasing customer base as its rural and urban reach grows. Areas like microfinance are adding to the need of a robust storage system for these organizations,” said Surajit Sen, Director – Marketing & Alliances, NetApp India.

With millions of new subscribers every month and the entry of multinationals, Telecom is one of the fastest growing sectors in India. The Telecom industry is also making significant investments in value-added services.

The new Indian government is set to announce a slew of projects at the start of its term, so this is another sector to watch. There is a need to archive census information and other survey records, information about criminals, tax records, and property surveys. Projects such as digitization of land records, the National ID card, and digitization of passport records will drive demand for storage in the Government sector.

Informs Ashis Guha, Country Manager-India, Brocade, “We place higher emphasis on verticals such as Telecom, BFSI, Government, Manufacturing, and Healthcare. They are growing rapidly in India, and will require deployment of storage solutions that offer maximum return on investment and seek solutions that are scalable and energy efficient.  Among these verticals, we see a bigger expansion in the Telecom sector, as there has been consistent addition of new players including joint ventures with multinationals.”

Srikanth Jayaraman, Business Manager (Datacenter & Storage), Datacraft agrees. “Telecom is one vertical where the downturn has not affected the spending. But Education, Healthcare, and Government are all investing in not just storage but in IT. There has been some slack in demand in the BFSI space. Investments are being made, though after careful consideration.”

But not all of this spending will be on high-end storage. Some businesses have deferred purchase of more expensive storage and are instead investing in low-cost storage while optimizing existing capacity.

Harmeet S Malhotra, Senior Manager – Enterprise Storage Marketing (Asia Pacific & Japan), Dell said, “It’s just that the purchase of the most expensive storage is being replaced by lower cost storage by making some calculated sacrifices. But the demand is very much there.”

In certain verticals it is mandatory to store historical records and so businesses must continue to invest in incremental storage. For instance, patient medical records such as MRI scans, X-rays, and dental scans must be available throughout the life of the patient, or even beyond.

Legal and accounting records must also be retained. Video surveillance in security systems will also drive demand for storage media.