Storage Market in 2018: A Familiar Yet Exciting Year
The storage industry in 2018 felt like a continuation of 2017, but with a major transformation. Key trends such as rising cloud adoption, the shift from disk to flash, and the increasing reliance on software-defined solutions were shaping the future of data centers and storage infrastructure. These changes weren't new, but their impact was more profound than ever.
Despite the familiarity of these trends, 2018 was far from dull. Companies—both big and small—were forced to make tough decisions that could determine their survival. The ongoing transition away from legacy systems, combined with the delayed awareness of GDPR’s impact in the U.S., made this year one to watch. Let’s take a closer look at the top 10 trends shaping the storage industry in 2018.
The debate between public and private clouds is fading into the background. Enterprises are no longer choosing one over the other—they’re looking for hybrid solutions that combine the security of private clouds with the scalability of public ones. This hybrid model allows data to move where it's most valuable, and it’s becoming the standard for modern IT strategies.
Storage vendors are beginning to embrace this shift. By helping companies build private clouds and facilitating seamless migration to public platforms, they can stay relevant. However, many are still hesitant, fearing that too much data might move out of their control. But those who fail to adapt risk being left behind by competitors who are more agile.
Mergers and acquisitions will be more active in 2018, though not on the same scale as previous years. While large deals like HPE’s acquisition of SimpliVity or Nimble Storage won’t repeat, smaller strategic acquisitions will become more common. Vendors are either seeking new technologies or trying to fill talent gaps, which makes the market more dynamic than ever.
Dell EMC is working to refine its business model after the 2016 merger. Although integration caused short-term disruptions, the company has started to see recovery in storage sales. With the rise of cloud and software-defined storage, Dell EMC may not dominate the market as before—but it remains a key player in the industry.
NetApp continues to grow rapidly, especially in the cloud-native storage space. Its all-flash products saw strong growth in 2017, and the trend is expected to continue in 2018. However, competition is intensifying, and even NetApp faces pressure from both traditional and emerging players.
SSD technology is set to take over data centers. After a shortage in 2017 due to supply chain issues and new technologies like NVMe, SSDs are now on track for steady growth. As prices stabilize, enterprises are increasingly adopting all-flash storage for primary and secondary use cases.
Software-defined storage is gaining traction. Industry leaders like NetApp are moving toward a more flexible, software-centric approach. This shift reflects a broader trend in the industry, where customers prefer open, scalable solutions over proprietary hardware.
Hyper-converged infrastructure (HCI) will continue to grow in 2018, driven by its ease of use and flexibility. However, its long-term success depends on how well it adapts to evolving cloud and edge computing needs. If it fails to deliver value, its growth may slow down.
The Internet of Things (IoT) is pushing storage vendors to rethink their strategies. It's not just about storing data anymore—it's about processing it at the edge. Companies like Hitachi are integrating IoT, storage, and big data into unified platforms, setting a new benchmark for the industry.
GDPR is coming into effect, and many U.S. companies are unprepared. This EU regulation imposes strict rules on data protection and imposes heavy fines for non-compliance. As a result, storage and security providers are stepping up efforts to educate clients and ensure compliance across global operations.
Finally, computing is moving closer to data. With decentralized data environments and limited bandwidth, it's more important than ever to bring computation to where the data lives. New, efficient CPUs are enabling computing at the edge, in the cloud, and even within storage arrays themselves.
In 2018, the storage industry faced both challenges and opportunities. From shifting business models to regulatory changes, the landscape was constantly evolving. For those who adapted quickly, the year promised growth and innovation. For others, it was a test of resilience and vision.
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