Cloud storage gateways emerged during 2010-11 as a software or hardware appliance that can establish connectivity between on premise application and data stored in the cloud. Cloud storage gateways overcomes incompatibility between cloud protocols and enterprise applications through protocol translation. The growing demand for cloud storage solutions augmented by adoption of technologies like big data, analytics, business intelligence etc. will drive the market for cloud storage gateways.
North America hold the major share of cloud storage gateways market with close to 85% of vendors having headquarters in the region. North America will remain the leader in cloud storage gateways market due to the rise in demand for storage, data backup, disaster recovery and higher adoption rates of cloud computing as compared to other regions. The industry verticals like financial services, manufacturing, retail etc. have favored the utilization of cloud technology to innovate their operations and services.
Asia Pacific to witness a higher growth rate Government policies and reforms has favored adoption of advanced technologies including cloud in the region, thereby bringing tremendous change in industry landscape. APAC market is ridden by small and midsize businesses and cloud storage gateways is the cost effective way for firms to efficiently utilize data storage in cloud and power higher productivity. The growing digitization trend among businesses ranging from startups to large enterprises will drive the market for cloud storage gateways. This will be augmented by the shift towards mobile platforms, BYOD etc. The improved adoption of cloud storage in the region is also expected to give a boost to cloud storage gateways market.
Financial Services firms to lead cloud storage gateway adoption Financial services firms generate huge chunks of data every day from individual and corporate transactions.
The scalability and unlimited capacity of cloud storage have been serving the critical information storage needs of financial industry. With the advent of cloud, financial service firms are formulating IT strategies focusing on cloud adoption. Cloud storage has been increasingly adopted by financial services firms to store large volumes of data. Data stored in cloud is secured through encryption methods and gateways reduces latencies. Cloud storage gateways enable financial firms to securely store critical data in private cloud infrastructure and give applications access to data. Financial service firms with distributed branch offices can securely store data in cloud rather than on premises and can be centrally managed. Compliance to regulations have given a boost to the technology’s adoption in financial services industry.
Challenges The market for cloud storage gateways is growing at a healthy rate but there are certain challenges that need to be overcome for the technology to grow to its full potential. The challenges include lack of awareness among industries about the technology, security and privacy concerns associated with adoption of cloud based storage solutions, data protection regulations inhibiting adoption etc. However, awareness initiatives and wide market reach of cloud providers will drive growth of cloud gateway technology in the long term. Besides, addressing the security aspects of cloud technology and its cost effectiveness will drive adoption among small and mid-size companies which would help the technology to flourish in the market.