Digital Media Backup Will Drive the Nascent Consumer Network

ABI Research believes the increasingly difficult task of managing digital media will drive the adoption of network storage in the home.

Digital Media Backup Will Drive the Nascent Consumer Network Storage Market

to Nearly $1.2 Billion by 2011

Oyster Bay, NY - August 9, 2006 - While today's market for consumer digital
media backup is dominated by low -cost solutions such as USB hard drives and
CD/DVD writeable drives, ABI Research believes the increasingly difficult
task of managing digital media will drive the adoption of network storage in
the home. The worldwide market for consumer network storage will increase
from its current nascent state of $305 million in 2006 to nearly $1.2
billion by 2011.

'Today fewer than 4% of those who have a home network use some form of
network storage device,' says principal analyst Michael Wolf. 'While most
consumers today do not have a good understanding of network storage, we
believe that over time consumers will be drawn to the benefits of
centralized storage and the redundancy these solutions provide.'

Japan and Europe are ahead of North America in the adoption of network
storage. This has been driven in part by the fact these markets are less
PC -centric than North America, as well as by the success of vendors such as
Buffalo Technology, the worldwide consumer network storage leader, in its
home market of Japan. ABI Research expects that network storage will see
increased adoption across all major geographies, even as form factors
differ. European markets have seen greater adoption of network storage
bridge/adapters such as the Linksys NSLU2, while Japan has seen adoption of
more traditional NAS devices.

In addition to simple back up and centralized storage, consumer network
storage vendors are adding media server capabilities to their products. The
network storage drive will increasingly become a 'media tank' that can serve
content around the home, enabled by support of DLNA and UPnP standards as
well as more powerful specialized network storage processors.

'NAS on Chip (NASoC) processors from the likes of Marvell and Broadcom are
helping to create more powerful devices at lower prices,' says Wolf. 'In
addition to lower prices, consumers are being offered increased flexibility
through the inclusion of USB and support for SATA drives, as well as through
modular form factors such as Netgear's Storage Central. Increased choice
combined with more powerful media serving capabilities at lower price points
will increasingly drive consumer demand for these products.'

'Consumer Network Storage Market Analysis' examines the consumer
market for consumer network attached storage. This report examines the
different form factors as well as the enabling silicon for the different
products in this market. It forms part of the Home Networking Research Service.

Founded in 1990 and headquartered in New York, ABI Research maintains global
operations supporting annual research programs, intelligence services and
market reports in broadband and multimedia, RFID and M2M, wireless
connectivity, mobile wireless, transportation and emerging technologies. For
information visit www.abiresearch.com, or call +1.516.624.2500.

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