Storage spending veers toward cloud

The cloud is where the action is in enterprise storage.

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.

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