Why Resellers Need to Re-Evaluate Where Storage Revenues Will Come from Tomorrow

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On the surface, things should be looking very rosy for resellers with storage practices.

The amount of digital data is growing exponentially, and by 2020 the demand for data storage is expected to outstrip production by a jaw-dropping six zettabytes.

That’s surely good news.

But hold the champagne, because scratch the surface, and you’ll find that things aren’t looking so rosy. Why?

For one, customer budgets are not growing at the same rate as the data. Only about 7 percent of IT budgets are allocated to data storage, a figure that looks unlikely to change.

And it’s worth noting that while revenue from traditional enterprise storage hit its peak in 2014, there are multiple analyst sources that track customer spend note that customers are moving towards more efficient alternatives to traditional, high-cost storage solutions.

Where’s the Market Headed?

IT Brand Pulse predicts that by 2020, software-defined storage will not only overtake traditional storage, but 70 percent to 80 percent of storage will also be managed on less expensive or commodity hardware managed by software.

Software-defined storage is expected to grow from $1409.7 million in 2014 to $6217.6 million by 2019, at an estimated Compound Annual Growth Rate (CAGR) of 34.6% from 2014 to 2019.

As the CEO of Thomas-Krenn.AG, Dr. David Hoeflmayr puts it, “If a customer is tripling their storage needs over the next few years, they know they’ll have to go down the software-defined storage route.”

And he should know. His company successfully implemented a software-defined storage solution at the University Hospital Essen to store patient data such as the results of diagnostic radiology exams, such as X-rays, ultrasounds and MRI scans that were growing at an exponential rate at 70 – 80 percent lower expenditure.

Software-defined Storage Is the Future

Enterprises are moving to rein in costs while growing capacity. And software-defined storage can help them do that, and address other storage challenges such as:

• Exponentially increasing volumes of data, especially unstructured data
• Decreasing backup windows
• Replication and recovery issues
• Security and compliance concerns
• Maintaining data availability for analytics
• Rising staff costs

Software-defined storage addresses every one of those challenges.

Resellers need to be savvy to the rising demand for software-defined storage which creates a tremendous long-term sales opportunity for partners who move now to take advantage.

Understand the scale of the opportunity – read the full report, Software-defined Storage to Solve Tomorrow’s Storage Challenges.

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Miriam Kang
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