Consolidation is the name of the game in data storage. In Part III and Part IV of this series, the role of mergers and consolidation was explored, but how will it impact the biggest and smallest companies? In other words, how will major data companies adapt to changing data storage options, and what will happen to small independent data storage providers? The answers to those questions make up the final trends to expect, as explained by CRN.com, in the industry throughout the remainder of 2017.
Some companies may have already consolidated their data storage options, so finding innovative ways to impact the market in 2017 can be a challenge. Meanwhile, the NAND shortage will continue to leave major companies with a sense of idle hands, and cloud storage will become the “gold standard” for new and upcoming businesses. Thus, expect innovation and development strategies to evolve this year.
For example, some companies may begin working to enhance software strategies, not complete drastic redesign of storage solutions. In other words, these companies will work on ways to optimize data allocation with existing data storage resources. Essentially, engineers and programmers will look for areas in applications and software suites that “waste” data, increasing the time and resources needed to transmit and store information. So, processing, storage and retrieval speeds will likely climb without significant changes in storage technology itself.
History of data storage companies reveals an inevitable truth. Companies with the best technology and resources will look for smaller companies as a source of increased revenue and new ideas. In other words, bigger companies will seek out startups and other independent storage companies for acquisition or mergers. That, in turn, will create potential for large companies to gain a bigger monopoly of the market. For supply chain management providers, this represents opportunities to access greater resources at a fraction of the cost of working with independent companies.
Essentially, independent, small companies might not have the capital and resources necessary to operate nationally or internationally. But, mergers and acquisition courting will drive the services of independent companies forward. Thus, supply chain management companies can work with the executive-level leadership of independent companies to gain an advantage over bigger data providers. In turn, this will help to prevent dramatic spikes in the cost of data storage.
We are in the midst of a year of change across supply chain management, and your company needs to consider how the trends in data storage presented in this five-part blog series will impact operations. Most of these trends will bring growth and prosperity, but a few also present unique challenges to supply chain management professionals.
Fortunately, you can put your concerns at ease by partnering with an experienced leader in supply chain management, such as Flash Global. Contact Flash Global by filling out the online contact form.