Chris Mellor over at The Register posted an article discussing Santa Clara Consulting Group’s (SCCG) recent forecast of the physical tape market. In summary, SCCG’s latest analysis indicates that physical tape sales (both media and drives) decreased 25% in 2009 and 7% in 2008. Some may suggest that this accelerating decline is a sign that tape is dead. I respectfully disagree. Tape still plays an important role in data retention and archival and will be used for years to come.
There are some bright points in SCCG forecast. They suggest that LTO drive revenue will grow at a 2.47% compound annual growth rate (CAGR) through 2014 while tape revenue will decline by a 2.21% CAGR. Clearly they believe that LTO will continue to dominate the market and outperform all other formats.