Data Archiving & Storage Services Procurement Category Market Research Report from IBISWorld has Been Updated

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Demand growth for data archiving and storage services has intensified in recent years as the number of new businesses, private investment in computers and the percentage of services conducted online have all risen, which has limited competition and hurt buyer power. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Data Archiving & Storage Services in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Price-based competition is projected to increase as foreign competitors improve their IT capabilities and penetrate the US market

Data archiving and storage services have a buyer power score of 4.0 out of 5, reflecting positive negotiation conditions for buyers. Over the three years to 2014, suppliers of cloud computing and telecommunication services have improved the quality of their services and extended their geographic reach, providing buyers with a larger pool of viable supplier options. Meanwhile, new suppliers have entered the market at a moderate rate, adding additional supplier options. In turn, the market has remained highly competitive, despite overall high market concentration. “These factors have subdued price growth and provided buyers with opportunities to pit suppliers against one another to obtain a better deal,” according to IBISWorld business research analyst Daniel Krohn.

Nonetheless, strong demand growth has weakened buyer power over the past three years. Having few cost-effective substitutes, buyers are increasingly seeking data archiving and storage suppliers to free up digital space as their data grows. “Furthermore, regulations often require businesses to archive their data, making these services a nondiscretionary purchase for some buyers,” says Krohn. Meanwhile, demand growth has intensified in recent years as the number of new businesses, private investment in computers and the percentage of services conducted online have all risen. In turn, this demand growth has limited competition and hurt buyer power.

Rising input costs have also cut into buyer power. During the past three years, electricity and telecommunications services have become more expensive, thus, raising the cost of supplying data archiving and storage services. As operational costs have grown, suppliers have been less willing to negotiate with buyers, thereby hindering buyer power.

The size of the supplier also affects buyer power. The four largest service providers, EMC, Hewlett-Packard Development, IBM and NetApp, control a substantial portion of the market's revenue in 2014, leaving a number of small vendors vying for a small portion of the remaining market share. As such, larger vendors have less incentive to negotiate, thereby limiting a buyer's leverage when working with these suppliers. For more information, visit IBISWorld’s Data Archiving & Storage Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of data archiving services. Data archiving service providers move data that is no longer actively used to a separate computer storage server for long-term retention. Archived data is older data that remains important and necessary for future reference, but does not require access on a regular basis. Vendors that provide data and storage centers that house regularly used data are excluded from this report.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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