Network storage solution provider Synology expects revenue generated from the enterprise sector to increase 30-40% in 2024, as AI drives enterprise storage demand.
Network storage solution provider Synology expects revenue generated from the enterprise sector to increase 30-40% in 2024, as AI drives enterprise storage demand.
According to Dan Lee, general manager of Synology's Taiwan business division, AI has driven up the demand for data storage and protection in enterprises. Simultaneously, the economy has yet to fully recover, providing Synology with a favorable circumstance to penetrate the enterprise market.
Synology has established itself as the dominating player in the consumer sector, but its footprint in the enterprise market has traditionally been limited. The company has actively explored and established a five-year annual growth objective of 30% to 40% for its enterprise segment. Lee stated that the performance in 2023 exceeded the target and will continue to advance toward it in 2024.
Lee stated that AI is crucial in enterprise data storage and protection. He added that the number of enterprise information security users for Synology expanded by 25% year-on-year in 2023, while the number of monitoring solution authorizations increased by 40%.
An additional opportunity arises from economic headwinds, apart from AI. Company budgets have been reduced and attention has been redirected from their initial overseas storage sources to alternative options due to the global pandemic's impact on stagnant consumption, high inventories, and weak economic momentum. Synology has consequently acquired a greater volume of orders from enterprise customers, according to Lee.
In 2024, Synology will prioritize enterprise users across various sectors such as manufacturing, technology, and government, said Lee. The company will concentrate on three key domains: data storage, data protection, and image surveillance.
