January 21st, 2016 by Adam Armstrong
Public Cloud Spending To Double By 2017
According to a new survey by 451 Research, the Voice of the Enterprise survey, IT budgets will see strong growth over the next couple of years. Spending in public clouds environments and next-generation technologies will generate this increase in IT budgets. While this may be good news for cloud providers it does mean that traditional, on-premises storage budgets may see a decrease.
As we saw earlier this week with WD’ global survey, more and more businesses see the value in their data and are increasing their budgets in order to obtain the insights from the data. However with data being generated in such massive quantities from things such as the Internet of Things, companies need to rethink how they go about storing data. With increased focus on cloud environments, companies will be able to store more data in a cost-effective method without worrying about running out of capacity.
This survey’s findings are good news for companies like AWS that will potentially see their business grow dramatically in the next few years. Traditional storage vendors on the other hand may need to rethink their business to keep up with the changes.
Key findings include:
- Storage spending will be healthy in 2016, with over 70% of respondents expecting to increase their storage spending over the next 12 months, compared to 2015. However, storage spending growth in Europe and among very large organizations (over 10,000 employees) will be weaker than average, as will spending in the government and utilities verticals.
- On average, spending on public cloud storage will account for 17% of total enterprise storage spending by 2017, up from 8% today. In some verticals – such as retail – the public cloud will account for 25% of total storage spending by 2017. Spending on on-premises storage will fall from 70% in 2015 to 58% in 2017.
- While the traditional storage players, led by EMC, dominate the list of strategic players today, this looks set to change over the next two years. Both Amazon Web Services and Microsoft become top five storage vendors by 2017.
- From a storage products perspective, spending will increase the most on public cloud and all-flash arrays, while spending on traditional SAN and NAS products will be more muted. The largest spending declines will be on tape products.
- Dealing with data and storage capacity growth is by far the single greatest pain point for storage managers. Respondents cited improved backup and disaster recovery as top storage objective for 2016.
The survey focused on end-user trends in enterprise storage. Based on research conducted with over 700 IT professionals worldwide, the quarterly study combines 451 Research’s analysis with responses from a panel of more than 25,000 senior IT buyers and enterprise technology executives.