The cloud storage gateway is expected to register a CAGR of over 25.46%, during the forecast period of 2019-2024. According to a survey by Spiceworks in 2017, 42% of respondents highlighted the ability of cloud services to provide access to data anywhere as one of the top drivers of moving workloads to the cloud. Thus, the adoption of cloud storage gateway is also likely to increase.
- Further, according to Cisco, the companies favoring BYOD among their workforce, save upto USD 350 every year per employee. Also, the Financial Impact of BYOD study said that employees tackle the tasks the moment they receive them, accomplishing them more quickly and gain some extra minutes. Such trend helps the organization to move its workload in the cloud storage thereby increasing the demand for cloud storage gateway.
- For instance, in March 2018, BlackBerry and Microsoft partnered to empower the mobile workforce. By making Microsoft's mobile apps seamlessly available within BlackBerry Dynamics, enterprise users have a consistent experience when opening, editing, and saving a Microsoft Office 365 on any iOS or Android device. This enabled users to work anytime, anyplace, with rich file fidelity.
- Moreover, according to a survey by Unitrends in 2019, 61% of respondents stated that, in their organization, cloud technology is used for archiving and long term retention. It can be inferred that cloud storage is used for storing data and cloud storage gateway helps in data recovery by storing important files in local storage. Thus the market for cloud storage gateway will also increase because it helps in data recovery and constantly backing up the data
- However, the rising concerns related to the safety and legitimate use of this data is a major challenge for the growth of this market.
Scope of the Report
The cloud storage gateway acts as a bridge between local applications and remote cloud-based storage. The need for a bridge between cloud storage systems and enterprise applications arose because of an incompatibility between the protocols used for public cloud technologies and legacy storage systems. One of the major drivers for the growth of the market is the ability of cloud storage gateway to reduce redundancy and the ability to utilize the bandwidth resourcefully.
Key Market Trends
Healthcare Industry offers Potential Growth
- The healthcare industry is moving towards Health information technology, which provides critical life-saving functions, consists of connected, networked systems and leverages wireless technologies, and leaving such systems more vulnerable to data breaches.
- Moreover, the healthcare industry is one of the industries, which was impacted badly by the data breaching in 2018. This is mainly due to the low IT budget compared to other private firms. According to Gemalto, the healthcare industry continues to lead in the number of incidents (27%) in 2018. Moreover, according to HIPAA, healthcare data breaches are now being reported at a rate of more than once per day.
- The healthcare industry deals with personal and/or sensitive data and they rely on encryption to protect that data.
- For instance, in 2018, the Department of Health and Human Service's (HSS) Office of Civil Rights (OCR) issued a USD 4.3 million fine to University of Texas MD Anderson Cancer Center, in violation of HIPAA encryption requirements.
- Thus, the cloud storage gateway market is expected to witness an immense opportunity in the future, owing to the increasing database in the healthcare industry and the shift towards the cloud for protecting the database
Asia- Pacific to Witness Fastest Growth
- Asia-Pacific is expected to witness a higher growth rate, owing to two developing economies of the world. Currently, these two countries are growing at a faster pace and many developmental activities are being done here and all these activities are contributing to big data. Therefore, the adoption of the cloud storage gateway helps in reducing data redundancy and utilize bandwidth resourcefully.
- All the benefits associated with storing Big data on the cloud such as data encryption, data recovery, etc. will lead to the growth of the cloud storage gateway market in the future.
- Owing to this, governments across countries in the region have taken several measures to promote data security. For instance, in India, the need for data masking is strongly supported by the government. In July 2018, "Personal Data Protection Bill, 2018" was released that highlights that the right to privacy is a fundamental right, thus promoting data privacy in the emerging countries.
The cloud storage gateway market is highly fragmented because many players are operating in the market globally. Some of the major players are Amazon Web Services Inc., NetApp Inc, Microsoft Corporation, Oracle Corporation amongst others. Product launches, high expense on research and development, partnerships and acquisitions, etc. are the prime growth strategies adopted by these companies to sustain the intense competition. Some of the recent developments are:
August 2019 - Weintek USA partnered with Amazon Web Services for its cloud-based data and application storage for industrial operations. AWS deployed it Amazon S3 buckets which are specifically for cloud-based data storage.
- April 2019 - Microsoft's started selling its product Azure Data Box Disk in Japan. Earlier this was available only in the US, European Union, Canada, and Australia. Data Box Disk is an SSD-disk based option for offline data transfer to Azure. Additionally, Data Box Gateway can be leveraged for transferring data to the cloud such as cloud archival, disaster recovery,
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