Market Trends in Public Cloud Storage
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1 Market Trends in Public Cloud Storage Deepak Mohan, Research Director, Public Cloud Infrastructure as a Service Andrew Smith, Sr. Research Analyst, Storage Software IDC Web Conference 12 September 2017
2 Agenda Growth of public cloud Infrastructure as a Service (IaaS) storage Introduction to IDC s Storage Qview, and recent enhancements Insights from Q release IDC Visit us at IDC.com and follow us on 2
3 Growth of Public Cloud IaaS Storage Insights from IDC Trackers, Qview and survey results IDC Visit us at IDC.com and follow us on 3
4 $ Billions Growth of Public Cloud IaaS Storage Over one third of all storage spend by * 2017* 2018* 2019* 2020* 80% 60% 40% 20% 0% -20% -40% Public Cloud IaaS Storage Spend Growth in Public Cloud IaaS Storage Non Public Cloud Storage Spend Growth in Non Public Cloud Storage Growing maturity Reliability and features Access to skilled staff Success stories Adoption by large enterprises Enterprises a major driver of cloud growth AWS Snowball (2015), Oracle Archive Storage (2015) Google Nearline (2015), Azure Cool Blob Storage (2015) IDC Visit us at IDC.com and follow us on 4
5 Enterprise IT Applications on Public Cloud Over 60% report running production internal apps Use IaaS for Internally-facing IT applications and storage Use IaaS for Externally-facing IT applications and storage How do IT organizations use AWS? Use IaaS for SaaS or PaaS service provided to our customers Use SaaS services from AWS Use PaaS services from AWS Both, 61.3 Production, 25.2 Test/dev, 13.5 We previously used, but not using AWS any longer We have never used AWS IaaS 0% 20% 40% 60% 80% Source: Amazon AWS Infrastructure as a Service (IaaS) Survey, IDC, April, 2016, N=401 IDC Visit us at IDC.com and follow us on 5
6 Enterprises are Evaluating Public Cloud IaaS for Security Sensitive Workloads What are the Challenges with Public Cloud IaaS Storage? Challenges in Data protection, backup or Data security concerns Inability to retrieve data back in expected Vendor lock-in concerns Applications did not operate correctly Bandwidth costs were exorbitant Performance not adequate 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Source: Amazon AWS Infrastructure as a Service (IaaS) Survey, IDC, April, 2016, N=401 IDC Visit us at IDC.com and follow us on 6
7 Addressing Cloud Data Security Concerns Will Enable More Data Migration Factors blocking migration of remaining datasets to public cloud IaaS (mean ranking of factors, lower numbers imply that the factor is more important) The application workloads that use this data cannot be moved to AWS cloud Regulatory requirements that do not allow the data to be stored in AWS cloud Security and internal policy requirements that do not allow the data be stored in AWS cloud Cost of storage on AWS cloud will be higher than current cost Cost of data access (storage and retrieval) will be higher than current cost Other Source: Amazon AWS Infrastructure as a Service (IaaS) Survey, IDC, April, 2016, N=401 IDC Visit us at IDC.com and follow us on 7
8 Customers Anticipate IaaS Storage Usage to Grow What is the growth expected by customers in AWS S3 storage usage in next 12 months? Increase by more than 100% Increase, by % Increase, by 50-74% Increase, by 25-49% Increase, by 10-24% Increase, by 1-9% Decrease by less than 50% Decrease by more than 50% Go away entirely Stay the same Don't know 0% 5% 10% 15% 20% 25% 30% Source: Amazon AWS Infrastructure as a Service (IaaS) Survey, IDC, April, 2016 N = 327 IDC Visit us at IDC.com and follow us on 8
9 Customers Anticipate IaaS Storage Usage to Grow What is the growth expected by customers in AWS Glacier storage usage in next 12 months? Increase by more than 100% Increase, by % Increase, by 50-74% Increase, by 25-49% Increase, by 10-24% Increase, by 1-9% Decrease by less than 50% Decrease by more than 50% Go away entirely Stay the same Don't know 0% 5% 10% 15% 20% 25% 30% Source: Amazon AWS Infrastructure as a Service (IaaS) Survey, IDC, April, 2016 N = 327 IDC Visit us at IDC.com and follow us on 9
10 Data Migration from On-Premises is the Top Driver of Anticipated Growth Why do customers anticipate data growth in public cloud IaaS? My datasets are increasing in size I purchased a cloud gateway that allows data to be sent to AWS I implemented a new on-premises application that makes use of AWS Storage I implemented a new cloud-based application that makes use of AWS storage Currently piloting an application and storage in AWS and will move into production in AWS Overall migration of applications/data from on premise into public cloud services Migrating from another cloud provider (please specify which): Other 0% 10% 20% 30% 40% 50% 60% Source: Amazon AWS Infrastructure as a Service (IaaS) Survey, IDC, April, 2016 N = 327 IDC Visit us at IDC.com and follow us on 10
11 IDC Storage Software and Cloud Services Qview Product Introduction and Overview IDC Visit us at IDC.com and follow us on 11
12 Introduction to IDC Qviews What is an IDC Qview? Quarterly data deliverable offering worldwide IDC market sizing of a select IT segment. Usually limited in scope (e.g., worldwide only) Sometimes referred to as a mini Tracker Frequency of deliverable (quarterly) provides the ability to effectively respond to today's rapidly changing market IDC s Storage Software and Cloud Services Qview: Quarterly updates on the storage software and public cloud IaaS markets Market value (i.e., revenue) for leading vendors by critical market segmentation: Storage software: archiving, replication, storage management, DP&R, and more Storage-related Infrastructure as a Service (IaaS) spending by type (file, block, object) IDC Visit us at IDC.com and follow us on 12
13 Storage Software and Cloud Services Qview Roadmap 10 years of storage software market data including vendor shares and revenue segmentation June 2017: Qview added Public Cloud IaaS (Basic Storage) revenue, including top 5 providers, following the storage market as it expands into cloud deployments Industry-first insight into fast-growing public cloud IaaS market by top suppliers January 2018: Qview will add Disaster Recovery as a Service (DRaaS), Archive as a Service (AaaS), and Backup as a Service (BaaS) new market estimates and more inclusive range of providers Complementary to IDC s new Data Services for Hybrid Cloud and Cloud Data Management and Protection markets IDC Visit us at IDC.com and follow us on 13
14 What Markets Will Qview Cover? Storage Software Taxonomy Public Cloud IT Services Taxonomy Data protection & recovery Storage replication Archiving IaaS PaaS SaaS Storage & device mgmt. Storage infrastructure Software-defined storage controller software Network Server Basic Storage All storage software segments included in Qview, no changes Basic storage added to Qview, segmented by file, block, object, & other Storage Software and Cloud Services QView Storage Software Basic Storage DPaaS DP&R Replication Archiving File Block DRaaS AaaS Planned Storage & device mgmt. Infrastructure SDS-CS Other Object BaaS
15 IDC Storage Software and Cloud Services Qview 1Q17 Insights IDC Visit us at IDC.com and follow us on 15
16 1Q17 Breakdown of Storage Software and Basic Storage Revenue Segments! 1Q17 WW Storage Software market totaled $3.7B, declining 2.6% from $3.8B in 1Q16! 1Q17 WW Basic Storage market totaled $2.4B, growing 40.9% from $1.7B in 1Q16 IDC Visit us at IDC.com and follow us on 16
17 The Market is Evolving to Meet Cloud and SaaS Requirements! The storage software market is evolving in different ways, towards cloud (SaaS) and IaaS; some of it at the expense of traditional solutions IDC Visit us at IDC.com and follow us on 17
18 Questions and Discussion Thank you! Contact us at: Deepak Mohan, Research Director, Public Cloud Infrastructure as a Service dmohan@idc.com Andrew Smith, Sr. Research Analyst, Storage Software asmith@idc.com IDC Visit us at IDC.com and follow us on 18
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