Cloud storage is a type of data storage that takes place in cloud-based servers.
The data is stored on multiple physical servers that are in separate locations from where they’re regularly accessed.
See below to learn all about the global cloud storage market:
Cloud storage market
The cloud storage market was estimated at $52 billion in 2020. It’s forecast to maintain a compound annual growth rate (CAGR) of 21.6% from 2020 to 2027, reaching an estimated value of $204.4 billion by the end of it.
The solutions segment is set to reach a value of $97.5 billion by 2027, with a CAGR of 19.1%.
Regionally, the global market is segmented as follows:
- The U.S. market was estimated at $15.5 billion in 2020
- The Chinese market is forecast for a CAGR of 21.3%, reaching $36.1 billion by 2027
- Japan and Canada are forecast to grow at a CAGR of 19.4% and 18.5% over the forecast period
- Within Europe, Germany is projected to maintain one of the highest CAGRs at 15.2%
By industry, the global market is led by the following sectors:
- Banking, financial services, insurance (BFSI)
- Health care and life sciences
- Media and entertainment
- Consumer goods and retail
Multicloud storage and management
The shift toward the cloud is happening in all IT solutions. Enterprise cloud data storage is expected to make up 60% of all storage needs by the end of 2022.
With more critical operations being shifted to the cloud, from applications to databases and infrastructures, keeping data online is the best option for the majority of enterprises and organizations to ensure swift and efficient coordination between their multicloud solutions.
“The multicloud approach to enterprise cloud computing takes the hybrid cloud model and introduces multiple public cloud service providers to meet various needs,” says Simon Jelley, member of the Forbes Business Council.
“Having end-to-end visibility into and control of your entire data estate — from your on-premises resources to all of your public cloud service providers — through a single pane of glass is key to reducing the complexity of multicloud environments.”
Cloud storage features
When it comes to using cloud storage partially or fully, it’s important to take into consideration the different cloud and storage models available as well as their benefits and limitations.
There are several types of cloud storage models:
Public cloud storage
When using a public cloud model, storage and computing resources are available on-demand and shared with multiple organizations. This type of cloud is accessed through the open internet.
It’s the cheapest option for cloud storage and services, oftentimes sold in short- and long-term subscription and pay-as-you-go models.
Private cloud storage
Private cloud storage, also referred to as internal cloud storage, is a computing and data storage environment dedicated exclusively to a single customer. This type offers the most security and control over the storage environment and can be accessed either through the open internet or a secure communications channel.
The exclusivity of private storage comes at higher costs as well as management and system update efforts.
Hybrid cloud storage
A hybrid cloud is a combination of public and private clouds, allowing you to store and manage different segments of data on different clouds depending on their sensitivity and applicability to data privacy and security regulations.
As for data storage in the cloud, there are several approaches:
Object storage is a data storage approach that divides data into distinct units, called objects. This approach is suitable for handling large amounts of unstructured data that can’t be easily divided into rows and columns, such as media and input data.
File storage is a file-level data storage approach that uses a hierarchical storage system to organize the data. This form is ideal for rapid data sharing, as data files and folders can be accessed without requiring complex integration.
Block storage is an approach that aggregates and stores data in set structures called blocks. The blocks are treated as separate pieces, each marked with a unique identifier for easy access.
This storage approach is suitable for situations that demand fast and reliable data transfers.
Benefits of cloud storage
Cloud storage offers several key benefits to the organizations, such as:
- Streamlines data backup
- Minimizes on-site data storage
- Enables remote work
- Allows for convenient file sharing
- Reduces the burden on in-house IT
“With the right cloud storage implementation, employees are able to sync files and data from wherever they are working from,” says Rutter Networking Technologies in a post.
“Collaboration is easy — once information is stored, sharing it via the cloud is as simple as sending a link. Businesses don’t have to rely on emailing files that are too large, worry about version control between static files, or share removable storage devices that are easily lost or damaged.”
Cloud storage use cases
The following case studies highlight how different organizations are using cloud storage solutions:
Teespring is an online platform for e-commerce companies, enabling them to create, produce, and sell custom merchandise.
Millions of customers use Teespring to design and sell merchandise, which results in billions of image files with multiple products and color choices. This data needs to be readily accessible on-demand through Teespring’s manufacturing network.
Reaching out to AWS, Teespring addressed the problem using Amazon Simple Storage Service and Amazon S3 Intelligent-Tiering.
“We can be more experimental by using AWS Lambda to push updates to our site, knowing that even if something doesn’t work as planned, we can fix it in less than five minutes, probably without anyone even noticing,” says James Brady, VP of engineering, Teespring.
“Because of the services AWS provides and the ease with which we can implement them, Teespring has yet to hit a physical limit to what we can accomplish.”
With AWS, Teespring was able to save more than 30% in storage costs, build a massive image library for machine learning (ML), and perform tasks in five minutes that used to take one to two hours.
Trakto is an online design platform that targets businesses. It offers a large gallery of geo-localized templates with a drag-and-drop editor for over 60,000 entrepreneurs.
Handling the product design files for thousands of clients, Trakto wanted to focus on efficient data storage and management.
Working with Google Cloud, Trakto used the cloud storage solution for their file backups, flexible environments, and usability.
“Our participation in the Black Founders Fund boosted our business with credits to invest in cloud resources and the creation of a server-optimization culture,” says Paulo Tenório, founder and CEO, Trakto.
“Google’s intervention was a milestone in my journey as a Black CEO from northeastern Brazil. I can say that Google has opened new possibilities for the business.”
With Google Cloud, Trakto was able to increase its storage capacity to over 50 TB, aim for zero downtime for its platform, and achieve a 40% reduction in microservices development and maintenance.
Blanc and Fischer IT Services
Blanc and Fischer IT Services is the direct provider of central IT services to the Blanc & Fischer Family Holdings for kitchen living spaces. The Blanco-Group companies employ around 8,300 people in 56 office locations in 23 countries.
Looking to upgrade the IT services they offer, Blanc and Fischer needed a way to store and manage the large amounts of data that comes with it.
Working with IBM, Blanc and Fischer decided to move business operations to SAP HANA on Red Hat Enterprise Linux as well as IBM Power Systems and IBM FlashSystem for storage.
“We selected IBM Power Systems with IBM Storage as the underlying infrastructure, because we think it is the ideal platform for us to combine existing SAP workloads with new, cutting-edge solutions,” says Manfred Leistner, director/head of technology. Blanc and Fischer IT Services.
With IBM and its partners, Blanc and Fischer achieved 30% faster data processing performance for business workflows and reduced the number of applications needed for operations by a third.
Cloud storage providers
Some of the leading providers of cloud storage in the market include:
- Google Cloud
- Hewlett Packard Enterprise (HPE)