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By | Chris Mellor 21st January 2016 20:58

Public cloud storage spend to double in two years – reliable sources

It’s a pain! Data and storage capacity growth

Research house 451 reckons public cloud storage spend will double in two years, with on-premises storage spend falling 17 per cent.

Its Voice of the Enterprise: Storage study sees most organizations increasing their storage spend while also switching more of it to the public cloud, with Amazon and Microsoft (Azure) being the main beneficiaries.

The 451 Research people say the study is based on research conducted with 700-plus IT professionals worldwide, and combines 451 analysis with responses from a panel of more than 25,000 senior IT buyers and enterprise tech execs; believe its findings, in other words.

The study found that dealing with data and storage capacity growth is by far the single greatest pain point for storage managers. Its respondents said improved backup and disaster recovery was a top storage objective for 2016; good news for Asigra, Commvault, Veeam, Veritas, Zerto, and many other suppliers.

In more detail:

  • More than 70 per cent of respondents expect to spend more on storage in the next year.
  • Storage spend growth in Europe and in very large organizations (over 10,000 employees) will be weaker than average, as will spending in the government and utilities verticals.
  • Average public cloud storage spend will be 17 per cent of total enterprise storage spending by 2017; it's 8 per cent now.
  • In some verticals, like retail, public cloud will account for 25 per cent of total storage spending by 2017.
  • On-premises storage spend will fall from 70 per cent in 2015 to 58 per cent in 2017.
  • Traditional storage players, led by EMC, dominate the list of strategic players today.
  • Amazon Web Services and Microsoft will be among the top five storage vendors by 2017.
  • Spending will increase most on public cloud and all-flash arrays.
  • Spending on traditional SAN and NAS products will be more muted.
  • The largest spending declines will be on tape products.

It would be interesting to see a projection of on-premises versus public cloud storage spend out past 2017. And also it would be good to understand if server-based storage, like hyper-converged infrastructure appliances, and virtual SANs, will take an increasing share of the on-premises spend. ®

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