Traditional enterprise storage is dying. It’s becoming less and less viable for companies to create and maintain traditional data centers that have a fixed cost of operation, despite varying amounts of storage actually being used. Add on the fact that these data centers need proprietary systems to protect, backup and maintain assets, and it’s easy to see why the cost is coming increasingly close to exceeding the benefits.
As the cloud continues to improve, it’s becoming cheaper and cheaper for companies to get what they need without the fixed cost of owning and maintaining data centers — which are there even when it’s not in use. Data stored in the cloud with third-parties is highly scalable. Companies only need to pay for what they use and don’t need to worry about the costs of owning hardware that can handle expansions or further use. Data on the cloud is highly accessible and is much more cost effective. Cloud storage is also eliminating the need for systems to backup and manage workloads. Traditionally, companies would need to dedicate servers and other hardware to process requests to actually use and access data. Third-party services eliminate this need, further reducing overall cost.
Shifts in the Storage Industry
By shifting to cloud services for storage needs, companies are able to focus less on maintaining storage hardware and more on developing applications that run off of the built-in functions of cloud-based storage. In addition, blockchain technology also has the ability to impact cloud storage by further reducing cost and increasing security and privacy of data.
Corporate data must be secure. Storj, a blockchain-based cloud storage startup, seeks to revolutionize the industry by implementing blockchain technology and decentralizing data storage through strong cryptography. Not only should Storj create competitive rates, but the overall security of storing data with Storj should meet or exceed the security standards of large corporations, which currently offer cloud storage solutions.
As cloud-based storage becomes more relevant over time, the number of blockchain solutions similar to Storj will increase. Once blockchain storage clients reach enterprise-grade quality and capacity, our beloved decentralized technology will stand a serious chance at becoming a real contender in the mass storage industry. The blockchain’s decentralization, speed, and reliability give it an advantage over centralized cloud services, whose models revolve around keeping data on servers with high costs and maintenance requirements.
Data storage is an industry that is changing rapidly. Blockchain technology might have an increasingly important role in decreasing costs and increasing the security and efficiency of the way data storage is done.
What do you think about data storage? Let us know in the comments below!
Image courtesy of Storj.
Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.