Growth for computer data storage management systems slow and steady

LOS ANGELES, USA: Computer data storage management systems have a buyer power score of 3.4 out of 5. The score reflects a moderately beneficial pricing trend for buyers, with steady but slow growth in price over the past decade.

According to IBISWorld procurement analyst Andrew Krabeepetcharat, "Slowly rising prices are a result of the increased demand for data storage and management, as well as improvements in products." Buyers have some degree of negotiating power due to the moderate profit margins that suppliers generate and the growing competition between major companies.

However, buyer power is hindered by the high market share concentration that reduces the alternative suppliers that buyers can choose from. On the other hand, the largest suppliers of these products are large, multinational companies that have a moderate level of profit margin, leaving room for high quantity buyers to negotiate on price.

Prices for computer data storage management systems have generally risen slowly. Growing private investment in computers and software has increased demand for database management systems (DBMS). Also, the growing percentage of services conducted online has also contributed to increased demand as businesses attempt to effectively manage more data for business operations.

"Despite fast growth in demand for computer data storage management systems, prices have grown slowly due to competition among major companies," says Krabeepetcharat. Low price volatility has benefited buyers as they are better able to financially plan for capital investments.

Due to the slow growth trend in increasing prices, buyers do not need to purchase DBMS immediately to lock in prices. Products are also constantly undergoing change and suppliers are releasing new features each year including further integration with cloud technology.

Furthermore, switching costs for buyers of computer data storage management systems are high, giving buyers less negotiating power because buyers need to plan for purchases. A moderate level of buying lead time also reduces buyer power because the purchase of computer data storage management systems requires extensive planning and coordination among different departments.