Enterprise spending on storage for the private cloud expected to increase at a CAGR of 28.9% by 2015
International Data Corporation (IDC) has predicted that cloud computing will be drive net new IT spending over the next five years as public cloud service providers and the adopters of private cloud environments invest in the supporting infrastructure.
According to a new forecast from IDC, overall spending by public cloud service providers on storage hardware, software, and professional services will grow at a compound annual growth rate (CAGR) of 23.6% from 2010 to 2015.
Enterprise spending on storage for the private cloud is expected to increase at a CAGR of 28.9%. by 2015, combined spending for public and private cloud storage will be $22.6 billion worldwide, said IDC.
IDC Storage Systems & Executive Strategies vice-president Richard Villars said despite current economic uncertainties, IDC expects cloud service providers – both public and private – to be among the most expansive spenders on IT products and services as they continue to build out their facilities worldwide and expand their service options.
In parallel to the expansion of the public cloud, many organisations have started to deploy their own private clouds for application, compute, and content storage.
IDC said that public cloud service providers as well as major adopters of private cloud environments have five information requirements that are driving their current storage demands, including: efficient delivery of information/applications; reducing upfront infrastructure investment levels; minimising internal IT infrastructure investment; lowering ongoing costs associated with long-term archiving of information; and enabling near-continuous, real-time analysis of large volumes and machine-generated data.
"The challenge facing the storage industry will be to balance public cloud service providers’ demand for low-cost hardware while boosting demand for advanced software solutions in areas such as object-based storage, automated data tiering, Big Data processing, and advanced archiving services," said Villars.
"Big Data developments will be perhaps the most critical new marketplace for storage solutions providers in the coming decade. Providing a strong portfolio of complete Big Data solutions – hardware, software, and implementation services – will be a high priority to succeed. Similarly, a strong portfolio of active archival storage solutions will be a critical differentiator for private content/archive cloud deployments."