Data storage leading to increasing cloud revenue

Friday, April 08, 2011

According to a recent study conducted by the Bedford Report, the data storage sector within cloud computing will drive the technology's revenue during the next several years.

As more companies look to add value to their IT infrastructure while reducing costs, adoption rates for cloud computing will continue to soar; however, as more of these companies handle greater amounts of data, storage has become a necessity. This is especially true for media companies that deal with an increasing amount of uploaded data on a daily basis.

In recent years, cloud-based storage only accounted for a minor percentage of the technology's market; however, Bedford's report discovered that the sector is now quite sustainable and presents significant opportunities for cloud service providers.

Several of these service providers have announced significant revenue gains as a result of their storage sectors. Last month, one major provider acquired a storage system for roughly $480 million in cash in order to bolster its storage division.

As more data is uploaded and transferred among businesses, the need for storage will continue to increase and thus, the division will represent a valuable source of revenue for providers.