Brexit contributes to backup appliance sales fall

Pockets of growth in Europe fail to prevent overall decline

EMEA geography purpose-built backup appliance sales shrank 9 per cent annually in the third 2016 quarter, through there were pockets of growth.

IDC's Worldwide Quarterly Purpose-Built Backup Appliance Tracker reveals that capacty shipped grew 23 per cent to 237PB over the same period.

The report says vendor revenue in Western Europe was down 10 per cent year on year in 3Q16 to $140m, while capacity increased 35 per cent annually to 179PB.

The Brexit business and resulting sterling devaluation caused price increases and triggered a move to cloud backup use in the UK, according to IDC senior analyst Jimena Sisa. But the German market grew 8 per cent in revenue growth terms, due to uncertainty abut data locality regulations, as cautious customers there decided to retain data locally.

IDC_EMEA_PBBA_Q3

IDC says Central and Eastern Europe saw double-digit year-on-year growth due to backup investments by the banking and government sectors and the slow transition to public cloud services. Contrarywise "the Middle East and Africa market declined significantly due to the political instability and the worsening business climate in which only the most critical primary storage projects were financed,” according to Marina Kostova, senior research analyst, IDC CEMA. ®

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