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Commodity Cloud Storage: Shaking Out Already?

With the announced shutdown of EMC's Atmos Online, what lessons should we take away? First, commodity cloud storage pricing is already a brutal market segment, with hundreds of cloud backup offerings available today. EMC obviously decided a race to the bottom wouldn't be any fun. Second, sexy differentiators--like Atmos Online's policy-based data classification scheme, deduplication and compression--are expensive to deliver at commodity pricing.

Better to create packages of these features for the service provider market and let the big players there build their own solutions that can be sold and delivered at scale. EMC isn't leaving the cloud storage space; they've just recognized that there's a healthy service provider channel already in place. I think they'd rather compete for provider mindshare with advanced platform features, rather than compete for end user mindshare with SLA guarantees.

The announcement reinforces how important it is to understand who you're buying IT services from as you explore cloud compute and storage offerings. The best core technology vendor might not be in the services business for the long haul, especially if high-volume, low-margin selling has never been in its DNA. Over the next few years, as you budget for cloud services, be sure to include some padding for a migration or two as the cloud service provider market continues to shake out.

  • Premiered: 07/01/10
  • Author: Taneja Group
Topic(s): Backup Cloud Cloud Storage EMC


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