What 2017 Means for the Storage Market

When businesses are made to handle large quantities of data, they need the right tools in order to store and secure them properly. That way, their precious data is spared from such scenarios as hardware problems, virus attacks, and human errors. Safe data translate to more efficient business operations. That’s why back-up and recovery solutions matter.

This is where the data storage industry fits the picture. Numerous companies use storage services to safeguard crucial data and access them whenever they see fit. More crucial is the issue of archiving them in an efficient manner.

For those who are on the frontlines of the storage industry, we are now living in the golden age of big data. With companies being established overnight, they can expect the market for storage services to become more competitive.

But beyond that, entrepreneurs in this industry should also be wary of new developments in this field. There is always room for innovation, and the storage market is chock full of opportunities for improvement.

For 2017, there are numerous reasons to becoming more optimistic. Let’s see what exactly the year means for the data storage clique.

#1) Cloud services are becoming the norm

One integral issue is the popularity of Cloud-based services for enterprises. This year, the number of businesses using the Cloud will more likely to double. This is due to the need for a more cost effective data management. Moreover, this increase can also be the result of strong support from business owners who rely primarily on data for their operations.

The inaugural Voice of the Enterprise: Storage study focuses on end-user trends in enterprise storage. Based on research conducted with more than 700 IT professionals worldwide, the quarterly study combines 451 Research’s analysis with responses from a panel of more than 25,000 senior IT buyers and enterprise technology executives.

Key Data Points From the Study

  • Storage spending will be healthy in 2016, with more than 70 percent of respondents expecting to increase their storage spending over the next 12 months, compared with 2015. However, storage spending growth in Europe and among very large organizations (over 10,000 employees) will be weaker than average, as will spending in the government and utilities verticals.
  • On average, spending on public cloud storage will account for 17 percent of total enterprise storage spending by 2017, up from 8 percent today. In some verticals—such as retail—the public cloud will account for 25 percent of total storage spending by 2017. Spending on on-premises storage will fall from 70 percent in 2015 to 58 percent in 2017.
  • While the traditional storage players, led by EMC, dominate the list of strategic players today, this looks to change over the next two years. Both Amazon Web Services and Microsoft will become top five overall storage vendors by 2017.
  • From a storage products perspective, spending will increase the most on public cloud and all-flash arrays, while spending on traditional storage area network (SAN) and network-attached storage (NAS) products will be more muted. The largest spending declines will be on tape products.

Dealing with data and storage capacity growth is by far the single greatest pain point for storage managers. Respondents cited improved backup and disaster recovery as the top storage objective for 2016.

source: eweek

#2) Spending will more likely to increase

An article from CloudComputing-News.net, quoting from a research conducted from Markets and Markets, sees the growth of the cloud services market. Projections show an increase $65 billion by 2020. And again, this is brought about by the need for business to improve their data management significantly.

Research conducted by MarketsandMarkets predicts that after doing nearly $19 billion in 2015, the cloud storage market would grow to more than $65 billion by 2020. source: Cloud Computing News

#3) Increase SSD use

The same article also projects an increase in solid state drive or SSD adoption. An alternative to hard disk drives, SSDs offer enterprises a great deal of flexibility and control in terms of managing big data since they are much more faster than HDDs. Wider usage of SSDs is possible as greater demand for these solutions is pulling prices lower and lower. We can then expect a majority of enterprises to adopt SSDs altogether.

#4) More competition

Along with these tangible developments, we can predict competition in the storage market to reach whole new levels. Big enterprises will, of course, dominate the field, but there’s no telling if a small startup might create a seismic impact that can put everybody on edge.

There’s no rest for the wicked in the data storage market. As new services come up every day, marketing such services should emphasize on making messages that truly click with the data concerns of one’s audience.