Home Network Storage Devices Find Their Niche

This IDC study assesses the scope and direction of the market for consumer data storage devices directly attached to a home network in the United States. While network storage solutions for the enterprise and small businesses have grown tremendously, the opportunity for network storage in the home promises to grow in equal measure, but the manner of its growth is less clear. The applications for networked storage, such as backup, file management, and remote access, are just as valid in the consumer world as they are in the business world, but it is unclear whether consumers are ready to adopt a separate device devoted to those functions.

"Networked storage will play a key role in the U.S. home network, but it is unclear that standalone network storage devices are the right solution for the mass market consumer. Consumers are more likely to purchase devices that integrate network storage applications, such as backup, media serving, and remote access, into devices that consumers are already purchasing, such as routers, entertainment receivers, digital video recorders, and PCs. In any case, device manufacturers need to give extra weight to ease-of-use issues, even at the expense of some functionality. However, home office, small business, and advanced users will certainly find value in standalone storage devices for unmanaged networks, and these are not trivial markets," said Jonathan Gaw, research manager for IDC's Consumer Markets: Home Networking program.