Public cloud set for influx of enterprise storage spending

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451 Research report notes at least doubling in public cloud storage spend by 2017

A recent report from 451 Research claims enterprises will continue to evolve their storage needs and usage in 2016, with most corporations surveyed stating plans to increase overall storage spending this year.

A significant portion of that increase is set for public cloud storage services, with the Voice of the Enterprise survey results noting at least a doubling in spending across the segment over the next two years at the expense of “traditional, on-premises storage.”

“The storage infrastructure may have proven itself hardy to change over the years, but it is not immune to the same uber-trends that are fundamentally disrupting the role of IT at organizations of all sizes, ” said Simon Robinson, research VP at 451 and research director of the firms Voice of the Enterprise: Storage service. “IT managers are recognizing the need for storage transformation to meet the realities of the new digital economy, especially in terms of improved efficiency and agility in the face of relentless data growth. It’s clear from our Q4 study that emerging options, especially public cloud storage and all-flash array technologies, will be increasingly important components in this transformation.”

Additional insight from the survey also showed storage spending will be “healthy” in 2016, with more than 70% of respondents expecting to increase spending this year compared with 2015. However, spending in Europe by “very large” corporations, government and utility verticals is expected to lag the average.

Public cloud spending is set to account for 17% of total enterprise storage spending by 2017, an increase from just 8% today. Conversely, on-premise storage spending is set to dip from 70% in 2015, to 58% in 2017. Among storage vendors, traditional providers like EMC, which is said to dominate the market, will see increased competition from the likes of Amazon Web Services and Microsoft by 2017.

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Dan Meyer

Editor-in-Chief, Telecom Software, Policy, Wireless Carriers
dmeyer@rcrwireless.com
Dan Meyer started at RCR Wireless News in 1999 covering wireless carriers and wireless technologies. As editor-in-chief, Dan oversees editorial direction, reports on news from the wireless industry, including telecom software, policy and wireless carriers, and provides opinion stories on topics of concern to the market such as his popular Friday column “Worst of the Week.”