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Storage spending veers toward cloud

7/09/2015 by Sharon Shahzad

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Sales are growing fastest for companies that ship generic storage hardware to big cloud providers, IDC says

The cloud is where the action is in enterprise storage.

Sales are way up for little-known manufacturers that sell directly to big cloud companies like Google and Facebook, while the market for traditional external storage systems is shrinking, according to research company IDC. 

Internet giants and service providers typically don't use specialized storage platforms in their sprawling data centers. Instead, they buy vast amounts of capacity in the form of generic hardware that's controlled by software. As users flock to cloud-based services, that's a growing business. 

Revenue for original design manufacturers that sell directly to hyperscale data-center operators grew by 25.8 percent to more than US$1 billion in the second quarter, according to the latest global IDC report on enterprise storage systems. Overall industry revenue rose just 2.1 percent from last year's second quarter, reaching $8.8 billion.

These so-called ODMs are low-profile vendors, many of them based in Taiwan, that do a lot of their business manufacturing hardware that's sold under better known brand names. Examples include Quanta Computer and Wistron.

General enterprises aren't buying many systems from these vendors, but the trends at work in hyperscale deployments are growing across the industry. Increasingly, the platform of choice for storage is a standard x86 server dedicated to storing data, according to IDC analyst Eric Sheppard. Sales of server-based storage rose 10 percent in the quarter to reach $2.1 billion. 

Traditional external systems like SANs (storage area networks) are still the biggest part of the enterprise storage business, logging $5.7 billion in revenue for the quarter. But sales in this segment were down 3.9 percent. 

This article has been extracted from http://www.cio.com, please click on this link to read the article in full http://www.cio.com/article/2980790/storage-spending-veers-toward-cloud.html

Montash is a multi-award winning global technology recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:

ERP Recruitment, BI & Data Recruitment, Information Security Recruitment, Enterprise Architecture & Strategy Recruitment , Energy Technology Recruitment, Demand IT and Business Engagement Recruitment, Digital and E-commerce Recruitment, Leadership Talent, Infrastructure and Service Delivery Recruitment, Project and Programme Delivery Recruitment.

Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

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