Corporate IT almost ready for online backup, IDC says
Researcher predicts sales of hosted storage systems will triple to $715M by 2011
Computerworld - The inability of large enterprises to control exploding data growth over the next few years will fuel rapidly increasing corporate use of hosted backup services, according to an IDC report released last week.
In the report the Framingham, Mass.-based IT research firm predicts that online backup revenues will climb to $715 million in 2011, up from $235 million in 2007.
Doug Chandler, an IDC analyst, said that providers of online backup services will have to convince corporate users that hosted systems can maintain the data security and strong time-to-restore performance of physical storage servers, especially compared to traditional off-site disaster recovery and regulatory-compliance retention-backup systems.
"There is so much data being generated by individuals that [companies] need to do something about backup," said Chandler. "There are new pressures to have a strategy in place to be able to know that yes, those files have been stored and will be retrievable for several years."
He said the entrance of major vendors into the online backup arena over the past 12 months is lending much-needed assurances to IT managers that hosted storage systems are legitimate solutions to their storage problems. Recent acquisitions include EMC Corp.'s $76 million purchase of start-up Berkeley Data Systems Inc. and its Mozy online backup business, IBM's acquisition of Arsenal Digital Solutions USA, and Seagate LLC's takeover of EVault Inc.
"Powerful brands like EMC, Seagate and IBM [provide] a different equation for enterprise customers. I think that is going to make a big difference," remarked Chandler. In fact, he said that numerous IDC clients have said that they would try online backup only if it were delivered by their largest storage provider.
In the short term, IDC expects that mostly consumers and small to midsize businesses will use online backup systems. The researcher predicts that vendors will cut prices in the short term to boost corporate demand.
For its online backup revenue forecast, IDC did not take into account hosted backup services offered as part of a broader application. However, Chandler acknowledged that some businesses are keeping a close eye on online storage offerings from companies such as Amazon.com Inc., which sells the Simple Storage Service hosted product.
"A lot of [online backup] activity and investment will be more in the direction of Web 2.0 type of content because I think that is where many people believe that is where data will be generated in next five to 10 years," said Chandler.
"There is definitely buzz around the discussion of 'What is Google going to do and what is Microsoft going to do,' " surrounding online storage, he added.
Read more about Data Storage in Computerworld's Data Storage Topic Center.
- Mobile Content, Collaboration & IDC's 3rd IT Platform: The Next Frontier for the Mobile Enterprise IDC focuses this article on talks about the new IT platform. This 3rd IT Platform will be the new wave for about the...
- 2014 Magic Quadrant for Enterprise Backup Software and Integrated Appliances Enterprise backup is among the oldest, most-performed tasks for IT professionals. Gartner provides analysis and evaluation of the leading providers that offer a...
- Data Warehousing: modern ecosystems for big data & analytics Five years ago, IBM observed that the planet was becoming more instrumented, interconnected and intelligent. Some 20,000 engagements later, here's what we've learned...
- IBM PureData System for Analytics compared with Teradata This report from ITG compares the cost and time to value of IBM PureData System for Analytics with that of Teradata DW Appliance...
- The Key to Happiness: Throw out Your Data Warehouse In this webinar, Kerry Reitnauer, Director, Solution Architect at FairPoint Communications will discuss the challenges the data warehouse brought, how they migrated to...
- The Foundation You Need to Build a Better Storage Infrastructure Watch this webcast to hear how you can maximize the economics of your data center by modifying your storage footprint and power usage... All Data Storage White Papers | Webcasts