Report: Data storage providers need to catch up to the cloud

Companies providing data storage solutions are falling behind in terms of adopting cloud computing solutions, and their lethargic behavior shows in a recent Bedford Report study that found data storage solutions companies experienced an overall trend toward disappointing quarterly results during the fourth quarter of 2010.

While the report did attribute some of the losses to poor personal computing sales, the study's overall conclusion was that cloud computing is the inevitable future of the data storage industry, and the sector is currently being hit hard by a lack of energy devoted toward cloud storage solutions by current leaders. The report found, as a whole, industry leaders in data storage are simply not prepared to deal with the cloud computing revolution.

Enterprise movements toward cloud computing are having a drastic impact on the data storage industry because companies are increasingly turning to off-site storage solutions. This has coupled with the need to store growing amounts of information to create a new sense of competition and diversity in the industry. To succeed in this changing industry, the report said, data storage vendors need to jump on the cloud bandwagon and begin moving to embrace the new technology.

The businesses that are moving to adopt cloud computing solutions for their data storage and other enterprise needs are reaping significant benefits. The report said cloud users are accelerating their time-to-value prospects when it comes to business financial metrics. Furthermore, organizations are experiencing larger returns on investments when they use cloud computing technology, the report said.

These positive enterprise impacts that are being created by cloud computing are driving more businesses to adopt the technology, the study found. As a result, the cloud is growing fast and companies are investing in cloud-based solutions for a variety of systems. Cloud data storage systems are thriving in this environment, according to the report, creating a sudden expansion in the industry. And cloud data storage is quickly moving from a small sector on the periphery to a major player that is taking market share away from traditional data storage vendors.

Speaking at the Cloud Security Alliance Summit, U. S. chief information officer, Vivek Kundra, said the federal government is planning a major move to cloud computing infrastructure. While the initial costs of the endeavor may seem contradictory to overall budget cuts called for in Congress, Kundra said the long-term benefits of cloud computing could include billions of dollars in savings.

Kundra told listeners the new Federal Computing Strategy will create ample benefits for government agencies that are facing potential budget cuts and need to find ways to reduce operational costs without sacrificing productivity. One of those benefits has to do with consolidating storage. Using cloud computing, which is founded on virtualization technology, Kundra said the government will be able to shut down approximately 1,500 data centers and consolidate their storage solutions into fewer locations or outsource them to cloud data storage providers.

Other benefits of adopting a cloud computing solution, according to Kundra, comes in the day-to-day operations of federal agencies. Kundra said government organizations spend too much time dealing with IT issues, such as computer maintenance, troubleshooting and not being able to access files and programs. This creates lost productivity and limits agencies' potential to maximize their service to the country. By adopting the cloud, many of these concerns are alleviated and overall efficiency and productivity can improve, according to Kundra. Currently, the cloud adoption plan is set for completion by 2015.