Meanwhile, data management company NetApp's Country Manager for Malaysia & Brunei, Heoh Chin Fah (pic), said: The IT industry is indeed undergoing a significant shift as customers evolve their IT strategies and consider how to take advantage of the cloud. It is the biggest transition in the history of IT and customers are looking for partners who can help them take advantage of the benefits the cloud offers while mitigating the risks.
Overall, the IT spending environment continues to be constrained, and the expectation for growth of the overall storage market has decreased to low single-digits. At the same time, customers are seeking to take advantage of new applications, modern data centre storage, and data management architectures. Based on our analysis, this has resulted in the traditional standalone hybrid storage market declining at about 9 percent, while at the same time the parts of the market addressed by our scale-out, software-defined, flash, converged and hybrid cloud solutions are growing at a rate of roughly 20 percent.
In general, IT spending will remain under pressure as customers evaluate cloud and modern architectures. NetApp continues to be forward-thinking and have made investments in growth areas, which are showing promising results, although they are not yet enough to offset the decline in our traditional business.
Our 2016 fiscal year outlook has been adjusted downwards slightly due to an increasingly uncertain macro-environment, the continued shift in the market, and an aggressive pricing environment. As we move into 2016, NetApp will continue to build on the strength of our Data Fabric strategy and the benefits that this solution will deliver to customers, partners, employees and shareholders over time.
We have made good progress but there is still more work to be done in order to be more efficient and agile so that we can best take advantage of our long-term growth opportunities, and we continue to have tremendous confidence in our opportunity for success.
Our customers are transforming themselves using digital technology, connected with pervasive broadband networks and cloud computing, to improve the efficiency of their businesses, build global business systems and better serve their customers. Data is at the heart of this transformation.
At the same time, they are scrutinizing the value they have gained from past IT investments, reducing budgets and rethinking how they consume data. This evaluation is creating caution around traditional storage system transactional spending, and is diverting spending towards transformational projects and modern architectures like scale-out, software-defined, flash, converged and hybrid cloud, where our data fabric strategy gives us an advantage over the competition.
Sign up for CIO Asia eNewsletters.