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Backup storage is the physical hardware that houses the data copies made during a backup process. Storage solutions made specifically for backups are adaptive to rapid retrieval and regular updating of content.
Unlike cold storage or digital archiving solutions, backup storage is used to house data for recovery in case of natural disasters or cyberthreats.
See below to learn all about the global backup storage market:
See more: The Best Enterprise Backup Software
Backup storage market
The backup storage market is a segment of the data backup and recovery market, which was valued at an estimated $8.4 billion in 2020. Projected to maintain a compound annual growth rate (CAGR) of 8.8% over the analysis period from 2020 to 2027, it’s expected to reach $15.2 billion by the end of it.
Regionally, the global backup storage market is segmented as follows:
- The U.S. market was estimated at $2.3 billion in 2020, with a 27.3% share
- The Chinese market is forecast for a CAGR of 11.7% over the analysis period, reaching $3.2 billion by 2027
- Japan and Canada are forecast to grow at a CAGR of 6% and 7.4% over the forecast period
- Within Europe, Germany is projected to maintain one of the highest CAGRs at 6.8%
- The Asia-Pacific segment, led by Australia, India, and South Korea, is set to reach $2.1 billion by 2027
- The Latin America segment is forecast to maintain a CAGR of 11% over the analysis period
By industry, various sectors are driving demand in the market:
- IT
- Telecommunications
- Retail
- Banking, financial services, and insurance (BFSI)
- Government
- Health care
- Media and entertainment
- Manufacturing
- Education
Backup storage features
Backup storage refers to a variety of data storage solutions that can be divided into two key categories, depending on the storage location:
On-premises backup storage
On-premises backup, or on-site backup, is a common type used by large companies working in data-sensitive industries, such as finance and insurance.
Instead of transporting data off-site for backup, the storage servers are located somewhere within the vicinity of the main offices or remotely.
Multiple types of storage solutions can be used for on-premises backups, such as hard disk drives (HDDs), tape drives, and solid-state drives (SSDs), depending on the storage capacity.
Cloud-based backup storage
Cloud backup storage can be achieved by outsourcing the backup needs to a third-party service provider or by leasing private, public, or hybrid cloud space to manage for data backup purposes.
Data is sent to the cloud server, where it can be accessed and recovered when needed.
The service provider is responsible for maintaining the cloud infrastructure. Choosing between public, private, and hybrid cloud can be influenced by the type of data stored and data management regulations.
AI and backup storage
On their own, backup storage solutions are reliant on human guidance. Whether it’s the management of stored data or the scheduling of maintenance that doesn’t interfere with set update times.
By introducing machine learning (ML) and artificial intelligence (AI) into the equation, data backup solutions become more self-sufficient and automated. Not only will smarter backup storage solutions save time, but they could also predict and prevent system failures.
“Automation has played a key role in managing data for a long time. … It then got a bit more sophisticated with things like automated discovery and protection of new workloads,” says Simon Jelley, a member of the Forbes Business Council.
“AI is also currently helping to predict hardware failures in backup storage devices and enable relevant hardware to be replaced before failure to avoid backup performance impact and recovery failures.”
Benefits of backup storage
Having a dedicated solution for backup storage is essential for data-driven companies that handle business and customer data.
Some benefits of data backup storage include:
- Achieving regulatory compliance
- Reducing on-site IT costs
- Reducing the workload on IT teams
- Enabling data recovery in emergencies
- Mitigating the damages of ransomware and malware
- Prompting customer trust
“Organizations that obtain data from their customers, such as online stores or insurance agencies, have a high risk and a huge responsibility to protect their consumers’ data,” according to a post at Rewind.
“With the sudden rise in privacy regulations, organizations have an added responsibility to secure their consumers’ data and protect it from loss or breach. Failure to do can result in heavy fines and penalties. In reality, every organization should have a backup and recovery plan in place.”
Backup storage use cases
With the widespread demand for backup storage solutions, providers are offering a variety of options for organizations:
Point Loma Nazarene University
Point Loma Nazarene University (PLNU) is a private liberal arts school located in San Diego. The university teaches over 60 different fields to its 3,000 students.
PLNU had its own tape library and was storing all its critical data on-site. With its storage hardware becoming outdated, the university sought a different solution for its infrastructure.
Working with Clumio, PLNU diversified its data storage and backup system to include cloud backups on AWS and on-premises backups that can be both managed through the same software.
“The fact that we can unify our backup and retention policies across all of the various different technologies that we use is amazing. I am keenly looking out for the next thing that Clumio adds to the platform,” says Joe Alcorn, infrastructure manager, PLNU.
“While one of our biggest concerns going in was budget, we certainly had hoped to find a solution that provided more than just an economical solution.”
PLNU was able to save over 20% of data management costs, restore a server within 30 minutes, and protect three different data sources.
Woodward
Woodward is a designer, manufacturer, and provider of industrial control systems and their components. Based in Fort Collins, Colorado, its products include aircraft engines, power generators, mobile industrial equipment, and industrial engines and turbines.
Woodward was struggling with slow backups and inconsistent data policies that resulted in gaps in its data protection. It also sought centralized management for its backup and disaster recovery.
Working with Commvault, Woodward used Complete Data Protection for on-premises and AWS cloud, enabling it to unify its backup and data management solutions across 25 locations.
“Our existing backup products were not meeting our needs. … Any restore requests that came in, we just crossed our fingers and made a best effort at recovery,” says Loren Leveque, senior manager IT and system networking, Woodward.
“Commvault to the rescue. Our long-standing backup and restore problems are now a thing of the past.”
With Commvault, Woodward was able to save 10 hours a week on data administrative tasks, cut SQL backup from 24 hours to 15 minutes, and achieved over 70% data reduction using duplication.
IGZ
IGZ offers a range of SAP-assisted services and integration with the SAP software suite. Based in Brandenburg, Germany, it offers solutions for the optimization and management of complex processes in logistics, production, distribution, and transportation.
IGZ works around the clock with its customers to ensure optimal working conditions for its solutions. This creates the need for a data storage and backup solution that can handle massive amounts of data incoming at all times.
Working with NetApp, IGZ implemented an all-flash data storage system and used NetApp Snapshot for backup, operating in two separate buildings with its four VMware ESX servers and 120 virtual machines (VMs).
“The NetApp concept of data fabric was the sweet spot. No other vendor could offer this kind of future outlook. It also convinced our management,” says Matthias Schmidt, team lead in system administration, IGZ.
“I would always recommend that companies with similar needs use a solution from NetApp. With our current configuration, we are ideally positioned for the coming years.”
Switching to NetApp, IGZ achieved a 13 times higher IOPS rate, gained 200% more storage capacity, and shrunk its storage footprint by 85%.
Backup storage providers
Some of the leading providers of backup storage solutions and services in the market include:
- CA Technologies
- Dell Technologies
- Oracle
- NetApp
- IBM
- Hewlett Packard Enterprise (HPE)
- Microsoft
- Commvault
- Unitrends
- Veritas
See more: The Backup-as-a-Service (BaaS) Market
