A must-read investor's guide to cloud computing innovations (Part 3 of 8)
Organizations spend a huge amount of time sorting and storing their data. Approximately 90% of all new data growth in corporate data centers comes from unstructured data that poses a serious scaling challenge for traditional storage systems. Organizations have used hard drives and external storage devices like compact discs. But the explosion in data generation and demand for storage has led to increased costs and challenges. Cloud storage has gained a lot of traction for its easy and low-cost storage solutions.
Cloud storage saves data to an offsite storage system maintained by a third party. The Internet connects the computer and the server. Cloud computing, when used for storage services, is called “cloud storage.”
Google Drive, Amazon Cloud Drive (AMZN), Microsoft Skydrive and One Drive (MSFT), and Apple iCloud Drive (AAPL) are the leading players in the space. Rackspace (RAX) and HP (HPQ) also have a significant presence in this market.
Microsoft, with its Office 365 services, has increased its storage capacity. In July 2014, Google announced its partnership with Panzura, a cloud startup that would offer 2 TB of free storage for a year. Amazon, Google, and Microsoft have consistently lowered their cloud storage prices in the last year, starting a price war.
The above graphs show the different cloud storage provided, ranging from 50 GB to 200 GB. When it comes to heavy cloud storage requirements above 500 GB, Google Drive offers the cheapest service.
According to Statista, by 2016, cloud storage industry revenue is expected to be approximately $4.04 billion. More than 70% of businesses and IT professionals have already implemented cloud storage systems or plan to in the near future. Cloud storage seemed to be the main reason for three out of four IT professionals’ migration to the cloud.
Advantages over traditional data storage
Data stored on a cloud storage system can be accessed from anywhere, provided the location has Internet access, offering remote access without a physical storage device. Other users can access the data as well, provided they have permission from the initiator.
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