Why The public Cloud Presents An Opportunity For Storage ISVS

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Data storage systems have always been one of the fundamental building blocks of IT infrastructure for modern enterprises. But enterprise analytics initiatives are spreading, and the Internet of Things is connecting millions of devices every day, making data storage systems ever more important to the survival of companies.

However, cloud practices are replacing ‘traditional’ enterprise data centres and storage systems. During the COVID-19 pandemic, global revenues for enterprise storage systems declined 1.4% year-on-year in the third quarter of 2020, even as shipped storage capacity increased 9.6% to 18.9 exabytes.

The Public Cloud will continue to disrupt traditional data centres used for data management and storage

The question remains, does the emergence of public cloud storage pose a threat to traditional ISVs? Or can they leverage cloud capabilities to improve their offerings?

How the Cloud is affecting Traditional Enterprise Datacentres
According to Gartner “Enterprises are demonstrating a continued preference for public cloud as compared to traditional non-cloud alternatives”. This is going to accelerate in the post pandemic world, as more enterprises look to increase operational efficiency. Gartner also stated that business spending on data centres would hit $200 billion in 2021, marking a 6% increase from 2020. At the same time, spending on cloud based infrastructure services is expected to touch $81 billion by 2022.

Bindu Sundaresan of AT&T Cybersecurity says “Businesses have become more decentralized and mobile to remain competitive. This has given rise to the distributed cloud model.” Toolsets like Artificial Intelligence, IoT, and advanced data analytics are enabling cloud platforms and driving the “next wave” of solution preference.

While growing cloud adoption is impacting traditional enterprise data centres, it’s too soon to sound the death knell. For instance, hybrid cloud platforms deploying both private and public cloud resources are becoming increasingly common.

Why must Storage ISVs adopt a Cloud strategy?
Even as cloud providers continue to play a crucial role in delivering better cloud-native applications and services, it is evident that cloud will not replace the traditional data centre. The 2021 AFCOM “State of the Data Centre” report notes that nearly 75% of organizations are moving from the public cloud towards private (or colocation) data centres.

Companies, who do not want to manage captive data centres due to high operational costs and security concerns, are preferring to migrate to colocation data centres. This is because customers are now looking for a complete solution that meets their IT requirements like cloud resources, networks and data security.

To scale up their operations to match growing customer needs, ISVs and data centre players are investing in developing a solution: infrastructure where the hybrid cloud can run seamlessly.

Let’s look at a few examples of ISVS leveraging cloud capabilities to improve their services.

Storage ISVs using the Cloud
1.Dell EMC
One of the leading names in data storage, Dell EMC has a market share of 26.2% in the data storage industry for the year 2021. The company’s storage products range from its PowerVault and SC series (for primary storage), to its EMC Unity hybrid storage arrays, enabling enterprise digital transformation using hybrid cloud solutions built on its data centre setup.

2. Cloudian
As an independent storage solutions provider, Cloudian has been recognized by the 2020 Gartner Peer Insights Customer Choice for its object storage architecture and distributed file system. Its flagship product, Cloudian HyperStore provides data centres with the flexibility and scalability needed to manage growing data requirements. Designed to store and find object files across multiple sites, Cloudian manages both on-premises and public clouds under a single and unified platform

3.Hewlett Packard Enterprise (HPE)
HPE/H3C, once an IT hardware and software provider, has now remodelled itself in the cloud storage space. With a wide range of storage products, HPE is a leading innovator in enhancing its products with technologies like AI and machine learning, offering both subscription-based cloud storage and physical on-premises infrastructure services.

IBM, a leader in high-end technology solutions and IT consulting, has now ventured into hybrid cloud storage solutions along with virtual cloud infrastructure. Some of their storage related products include SDS, data protections, SDNs, and hybrid storage arrays. Powered by emerging techs, IBM cloud storage has simplified IT infrastructures.

With a large storage market share, NetApp is a complete data management option for both on-premises and cloud systems. With a portfolio of 100+ storage solutions, NetApp’s hybrid cloud services comprise on-premises, private, and public clouds, which enables any data centric business to adapt and respond quickly to changing market needs.

Among its primary offerings, StorageGRID is an object storage platform that enables a hybrid cloud workflow, while their NetApp Cloud Volumes facilitates faster data movement and management in hybrid and private cloud centres.

The Public Cloud will continue to disrupt traditional data centres used for data management and storage. While it is seen as a challenge for Storage ISVs, it also enables them to collaborate and leverage public cloud capabilities to improve customer offerings.