According to the market research firm Dataquest, a unit of Gartner, the worldwide market for storage services will reach $41 billion by 2005. In 2001, the industry saw revenue of $25 billion. The market is expected to hit $26 billion in 2002.

The storage-service market is made up mostly of hardware and software support. A large percentage of revenue from this market has come from hardware support, driven by customers holding off on replacing equipment and having the systems serviced instead.

Software support makes up only a small amount of overall revenue, but Garner expects that situation to change as customers buy more storage-management software. Hardware-support revenue should also see benefits from the increase in storage-management software because customers are expected to hold on to their equipment longer after adding storage-management software to their storage solutions.

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