Cloud Growth to Drive Demand for Storage Solutions Out to 2015

Storage, hardware, software and professional services will grow at a compound annual growth rate of 23.6% from 2010-2015, as cloud computing drives net new IT spending and public cloud services providers and private cloud services operators invest in supporting infrastructure according to a report from International Data Corp. (IDC).

Forecasting that enterprise spending on storage for private cloud services will grow at more a CAGR of 28.9% to 2015, combined spending for public and private cloud storage will reach $22.6 billion worldwide, according to IDC's, " Worldwide Enterprise Storage for Public and Private Cloud 2011-2015 Forecast: Enabling Public Cloud Service Providers and Private Clouds."

"Despite current economic uncertainties, IDC expects cloud service providers - both public and private - to be among the most expansive spenders on IT products and services as they continue to build out their facilities worldwide and expand their service options," Richard Pillars, vice president, Storage Systems & Executive Strategies at IDC, stated in the press release.

The emergence of public, cloud-based application and infrastructure providers has been the biggest driver of IT spending for storage over the past three years. Large, public cloud services providers, such as Apple's iTunes, Nettling, YouTube and Facebook, serve as "content depots," IDC says, in the business of gathering, organizing and providing access to large quantities of digital content. Other cloud services providers have also emerged that focus on providing cloud IT infrastructure and applications based on a cloud-as-a-service model, such as Salespeople's, Web Ex Connect and Amazon Web Services.

These companies have "undertaken massive storage build-outs" over the last several years as they've expanded their service offerings, entered new markets and extended geographically, IDC notes.

At the same time, a fast-growing number organizations have begun deploying private clouds for application, computing and archival content storage. Some of these, such as government and research sites, are comparable in scope and complexity to the larger public cloud platforms, while others are more limited in scope, according to IDC.

Public or private, there are five requirements driving current storage demand from cloud operators:

  1. Enabling more efficient delivery of information/applications to Internet-based customers
  2. Reducing upfront infrastructure investment levels (ire., cutting the cost and time associated with deploying new IT and compute infrastructure)
  3. Minimizing internal IT infrastructure investment associated with "burst" or unpredictable workloads
  4. Lowering and/or distributing the ongoing costs associated with long-term archiving of information
  5. Enabling near-continuous, real-time analysis of large volumes and wide varieties of customer, partner, and machine-generated data (Big Data)

"The challenge facing the storage industry will be to balance public cloud service providers' demand for low-cost hardware while boosting demand for advanced software solutions in areas such as object-based storage, automated data tearing, 'Big Data' processing, and advanced archiving services," noted Pillars.

Written by Kevin Kutcher at 00:00