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Storage: Cloud Giants Bypass Big Three Storage Vendors When Building Datacenters
A total of 72.5 exabytes of enterprise storage systems shipped worldwide in the third quarter 2017, according to a report by IDC, an increase of nearly 25 percent over the same period in 2016. Sales revenues reached $11.8 billion, a 14 percent increase.
Top storage sales are still going to HP, Dell and IBM, but these big name vendors may be worried. As businesses move to the cloud, the large buyers of new storage devices are skewing away from enterprises towards cloud vendors.
In fact, much of the growth in the storage industry is being driven by the huge cloud vendors: Amazon, Microsoft, Facebook and Google. These cloud businesses are buying massive amounts of storage that they themselves design and spec and then are supplied by contract manufacturers, many from Taiwan. The big name storage vendors are out of the loop in the cloud business. Thousands of these storage systems are being deployed into data centers that use hyper-converged architectures where they are pooled and managed. Admins are able to quickly scale up with new storage nodes, as needed.
Eric Jhonsa in a story for The Street, wrote that “clearly, the preference among cloud giants to rely on their own server/storage designs is a big headwind for old-guard storage vendors, especially as more and more enterprise workloads move to cloud infrastructures. But it also isn’t helping that enterprises are also embracing distributed server/storage systems. While incumbent players claim a big piece of this pie, there’s more competition here overall than there is for traditional external storage systems, and — due to the fact that many of these systems rely on commodity hardware — margins are often lower.”
