63% of CIOs Plan to Increase Data Storage Spending in 2013: a Wall Street Transcript Interview with Andrew Nowinski, Assistant Vice President and Research Analyst at Piper Jaffray & Co.

Wall Street Transcript

67 WALL STREET, New York - February 12, 2013 - The Wall Street Transcript has just published its Data Hosting Centers and Data Storage Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Data Hosting Centers - Flash Memory - Cloud Computing Secular Trends - Internet Infrastructure Build - Big Data, PCIe Storage, Cloud Computing and the Virtual Desktop - Data Center REITs - Colocation, Managed Hosting and Cloud Computing - Data Center Expansion -

Companies include: CommVault Systems, Inc. (CVLT), Brocade Communications Systems (BRCD), Mellanox Technologies, Ltd. (MLNX), Emulex Corp. (ELX), QLogic Corp. (QLGC), EMC Corporation (EMC), NetApp, Inc. (NTAP), Hewlett-Packard Company (HPQ), Dell Inc. (DELL), International Business Machine (IBM), Apple Inc. (AAPL), VMware, Inc. (VMW), AT&T, Inc. (T)

In the following excerpt from the Data Hosting Centers and Data Storage Report, an experienced analyst from Piper Jaffray discusses the outlook for the sector for investors:

TWST: What are the key drivers of the industry right now? Is it just sheer demand and amount of data that needs to be stored?

Mr. Nowinski: There are a number of key trends driving spending growth in the storage market, the first of which is simply the unabated growth of data. To contain that growth, enterprises have historically relied on efficiency technologies such as deduplication and compression. However, those technologies are not enough, and what we are seeing now is a transition from the traditional scale-up storage architecture into a scale-out architecture.

IDC recently published a report on this and cited EMC (EMC) and NetApp (NTAP) as the leaders of this scale-out market transition. Enterprises cannot keep up with the growth of data, but traditional storage architecture create silos or islands of storage as capacity increases, which in turn increases complexity.

The second key trend is cloud computing, and we are definitely seeing cloud providers ramping up on spending in storage. In the October quarter, NetApp actually reported that revenue from the telco and cloud providers doubled on a sequential basis, and there are now over 200 cloud services that are based on NetApp technology. EMC is also aggressively targeting that market. I think it's safe to assume that the cloud will be part of every storage hierarchy at most major enterprises down the road.

The third growth driver of the storage market is really the need for increasing I/O, or input/output. This trend really ties all the growth drivers together...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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