The other day, we discussed the New York Times' take on the new emerging Internet boom (or bubble), and wondered why cloud computing wasn't mentioned as one of the trends feeding the boom.
Derrick Harris at GigaOm answered this question, pointing to one of the boomlets the market is seeing -- storage systems for cloud computing. Tens of millions of dollars in venture capital funding is flowing into this market segment, and hundreds of millions will be spent on cloud storage over the next few months.
As Harris observes:
"Cloud storage represents a major opportunity for organizations because it lets them store terabytes of data without paying to build and maintain traditional systems. For new web-based startups, cloud computing might fill the entirety of their storage needs –- primary, backup, archiving, whatever. For more traditional businesses, much of the value lies in backing up primary data and archiving relatively low-value data for compliance reasons."
Harris also cites 451 Group research that projects that cloud-based storage will account for nearly 40% of the $1 billion core cloud infrastructure pie in 2010 -- a market expected to quadruple in size over the next three years.