Welcome!

Containers Expo Blog Authors: Elizabeth White, Liz McMillan, Yeshim Deniz, Pat Romanski, Ravi Rajamiyer

Related Topics: Containers Expo Blog, @CloudExpo

Containers Expo Blog: Blog Feed Post

Has Cloud Put a Dent in the Data Storage Market?

Is cloud taking a bite out of high-margin data storage?

While many would say it’s not a matter of “if” but “when,” this week has sparked some storage industry experts to ponder whether the high-margin data storage market is beginning to feel the impact of cloud adoption. To elaborate, let me direct your attention to two of this week’s announcements.

First, results from the IDC Worldwide Quarterly Disk Storage Systems Tracker for Q4 2011 indicate a slowdown in the growth of storage spending toward the end of last year. According to IDC, Q4 2011 saw a 3.5% increase in disk storage revenues as compared to Q4 2010. While this is far from a decline, it does represent a decrease in the 7.7% year-over-year growth seen for all of 2011.

Of course, this end of year slowdown could be the result of a number of factors, not the least of which is the disk supply disruption caused by Thai flooding. Interestingly, Dave Raffo postulates in a recent article that rather than the disk shortage, cloud and deduplication may instead be responsible for the revenue decline, as both conspire to reduce the amount of storage capacity businesses require.  In fact, in the case of cloud, the bulk of the margin is shifted from the storage vendors to the cloud providers. It would, of course, be speculative to assume we have hit this inflection point, but it will be interesting to see what the next few quarters have in store.

Second, Google’s announcement of its new ecosystem of enterprise cloud storage solutions, featuring a number of vendors enabling businesses to consume cloud storage with an enterprise-class look-and-feel, security and high performance was noteworthy. Certainly the $30B+ data storage market is an attractive target for cloud storage providers. Google cloud storage offers enterprise-class SLAs, sophisticated security and access controls, a high-performance network and aggressive pricing. To facilitate deployment of Google cloud storage, TwinStrata announced the availability of a free 1TB iSCSI gateway for Google cloud storage customers, presenting a simple and secure way to integrate cloud storage into the enterprise for  a number of use cases including backup, archive, storage consolidation among others. Overall, Google’s announcement is expected to further drive the industry trend toward cloud storage infrastructure.

So are we at a turning point where cloud storage is becoming a mainstream alternative to traditional on-premise storage? Let us know what you think and stay tuned…

More Stories By Nicos Vekiarides

Nicos Vekiarides is the Chief Executive Officer & Co-Founder of TwinStrata. He has spent over 20 years in enterprise data storage, both as a business manager and as an entrepreneur and founder in startup companies.

Prior to TwinStrata, he served as VP of Product Strategy and Technology at Incipient, Inc., where he helped deliver the industry's first storage virtualization solution embedded in a switch. Prior to Incipient, he was General Manager of the storage virtualization business at Hewlett-Packard. Vekiarides came to HP with the acquisition of StorageApps where he was the founding VP of Engineering. At StorageApps, he built a team that brought to market the industry's first storage virtualization appliance. Prior to StorageApps, he spent a number of years in the data storage industry working at Sun Microsystems and Encore Computer. At Encore, he architected and delivered Encore Computer's SP data replication products that were a key factor in the acquisition of Encore's storage division by Sun Microsystems.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...