Will SaaS storage services decrease how much storage capacity is purchased?

Expect to see a shift toward less spending for in-house storage capacity by enterprises.

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Near term there's not going to be a noticeable difference. But long term, as more and more services are established in the cloud, there will be a shift toward higher spending for storage by service providers and by enterprises.

But this will be a very gradual process. The fact that financial services companies have got so much skin in the game now that these services are not going away. Slowly but surely, other companies will get into it.

So it's not anything we're going to see overnight, but we'll see a world where there'll be less need for equipment being purchased by companies and more by the service provider side.

This was first published in August 2008

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