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Enterprise Needs Driving Cloud Sales Boom
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The cloud continues to gain major ground, driven by enterprise storage needs.
Sales are way up for little-known manufacturers that sell directly to big cloud companies like Google and Facebook, while the market for traditional external storage systems is shrinking, according to research company IDC.
Internet giants and service providers typically don’t use specialized storage platforms in their sprawling data centers. Instead, they buy vast amounts of capacity in the form of generic hardware that’s controlled by software. As users flock to cloud-based services, that’s a growing business.
Revenue for original design manufacturers that sell directly to hyperscale data-center operators grew by 25.8 percent to more than US$1 billion in the second quarter, according to the latest global IDC report on enterprise storage systems. Overall industry revenue rose just 2.1 percent from last year’s second quarter, reaching $8.8 billion.
These so-called ODMs are low-profile vendors, many of them based in Taiwan, that do a lot of their business manufacturing hardware that’s sold under better known brand names. Examples include Quanta Computer and Wistron.
General enterprises aren’t buying many systems from these vendors, but the trends at work in hyperscale deployments are growing across the industry. Increasingly, the platform of choice for storage is a standard x86 server dedicated to storing data, according to IDC analyst Eric Sheppard. Sales of server-based storage rose 10 percent in the quarter to reach $2.1 billion.
Traditional external systems like SANs (storage area networks) are still the biggest part of the enterprise storage business, logging $5.7 billion in revenue for the quarter. But sales in this segment were down 3.9 percent.
Overall demand for storage capacity continued to grow strongly, with 37 percent more capacity shipped in the quarter compared with a year earlier.
Source-http://www.thegurureview.net/aroundnet-category/enterprise-storage-needs-driving-cloud-sales-boom.html
Will SSDs Make HD’s Obsolete?
HD makers can expect to see revenues decline as demand for traditional disk drives falls, according to IHS Isuppli.
Hard drive manufacturers Seagate, Western Digital and Toshiba have carved up most of the market, lowering warranties and keeping prices high after the Thai floods in 2011 that shuttered several factories. Now IHS Isuppli claims that the good times have come to an end, with industry revenues expected to drop by 11.8 percent in 2013 and 2014 not expected to show signs of improvement.
While Seagate and Western Digital gouged consumers by keeping prices artificially high even after production recovered to pre-flood levels, solid-state disk (SSD) drive makers aggressively brought prices down. Intel has also been pushing SSDs as part of its ultrabook specification and with Windows 8 tablets using SSDs, the long term prospects for hard drive makers are not looking good.
Fang Zhang, analyst for storage systems at IHS Isuppli said, “The HDD industry will face myriad challenges in 2013. Shipments for desktop PCs will slip this year, while notebook sales are under pressure as consumers continue to favour smartphones and tablets. The declining price of SSDs also will allow them to take away some share from conventional HDDs. However, HDDs will continue to be the dominant form of storage this year, especially as demand for ultrabooks picks up and hard drives remain essential in business computing.”
IHS Isuppli said Western Digital could overtake Seagate to become the market share leader by the end of 2013, and said that hard drives will see greater use in the enterprise market in cloud and big data use cases.
RIM, Microsoft Sign Patent Licensing Deal
September 25, 2012 by admin
Filed under Around The Net
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Research In Motion’s shares jumped on Tuesday after it inked a patent licensing deal with Microsoft Corp to use one of the technology company’s file storage systems.
Microsoft said the patent being licensed by RIM greatly expands the size of files that flash memory devices can handle and increases the speed at which those files can be accessed. The technology also provides the ability to seamlessly transfer data between a variety of different devices.
“This is potentially money out of RIM’s coffers for the right to use the ex-FAT patent in its technology. But what it does for investors and others is provide a glimpse into what the BlackBerry 10 devices can do,” said Kevin Restivo, a mobile device analyst at global research firm IDC.
RIM has seen its once dominant position in the smartphone market slip away to Apple Inc, Samsung and other competitors, and the company’s fate may depend on the success of its new line of devices, the BlackBerry 10, which is set to hit the market early in 2013.
RIM hopes the BlackBerry 10 will help it regain market share that has been ceded to snazzier devices such as Apple’s iPhone and others that run on Google Inc’s Android operating system.
“I think there is some anticipation and speculation around the devices that RIM will launch as a result of the announcement today,” Restivo said.