The notion of cloud storage was originally sowed in early 1960 but it was introduced in 2006 by Amazon Web Services. The means of storing data in an enterprise have changed over the last few decades. The evolution of storage systems in organizations across the world has happened owing to intensifying corporate digital data and their stipulate for more storage at low cost with least maintenance.
With more and more digitization taking place in every industry, the thirst for data storage is rising, which cannot be sufficed by traditional means of storage thereby giving birth to cloud storage. It not only provides storage but also provides data backup which can be retrieved as and when required. Over the past few years cloud storage has seen a tremendous growth across the globe. Storage solution vendors have seen a potential market for cloud storage because of which new vendors had entered the market recently.
Increased competition has compelled major vendors to lower their prices thereby raising the entry barriers for newcomers.
The factors that drive adoption of cloud storage are the technologies like big data, mobility in enterprises, digitization in almost every sector and the increasing demand for storage at lower cost from the SMBs.
Constraints like data ownership, bandwidth limitation and location of data server which restrict organizations in adopting cloud storage.
The biggest challenge for cloud storage is vendor lock-in and security concerns from the end user side.
Vendor lock-in restricts an organization from switching its vendor and an absence of established protocols to switching vendors has resulted in vendors making their own set of rules for switching and data transfer.
Another challenge is the security of data as location of data storage is not known to the customers adding to the anxiety of losing critical data. The challenges of cloud storage can be overcome by the advantages of adopting it which includes unlimited capacity, scalability of storage space without affecting the performance of the organization, fast access of data from anywhere any time.
Presently, most of the enterprises have already adopted cloud storage because of the low cost associated with it. The trend is now shifting towards mid-size and small companies. Enterprise level companies prefer private cloud deployment of cloud storage solutions because of security reasons. Enterprises are adopting hybrid cloud storage which has advantages of both public and private cloud deployments.
Cloud storage adoption is growing among SMBs because of the cost benefits. Cloud storage makes it easier for the SMBs owners and managers, who prefer an easy access to their data at low costs. SMBs on the demand side are expected to generate good revenue in terms of volume to service providers thereby having a high impact on cloud storage market. SMBs across the globe are expected to grow in cloud storage adoption.
Cloud storage is adopted across industry verticals because of the advantages associated with it. Financial services, IT and telecom are adopting cloud storage extensively along with retail and manufacturing.
Among the cloud storage solutions, companies are hesitating to adopt the primary cloud storage solution due to latency issues. With the introduction of cloud storage gateway, the latency issues have been addressed and the performance of applications has improved. Majority of the organizations are using cloud storage as backup solution, which helps them in not only storing data but also provides disaster recovery options.
Gradually the awareness among organizations is increasing on the advantages of deploying cloud storage solutions. It has been analyzed that the cloud storage market has huge demand in regions like APJ and Europe, but the major concern is the location of database server and the ownership of data. In order to overcome this concern, major cloud storage vendors are implementing database servers globally, so that they the client data are stored and data leakage beyond the geographies is overcome.
Global Cloud storage Market is segmented on the basis of solutions, geographies, verticals, deployment mode, and end users. The market by solutions is further split into primary storage, backup storage, cloud storage gateway and data movement and access solution. The market by deployment model is split into private, public and hybrid cloud deployments. The geographies studied include North America, South America, Europe, Asia Pacific and Japan and Rest of World which includes Middle East and Africa.