The data storage industry is shrinking. The number of companies and technologies are being consolidated into a more universal, single point of access, and off-site servers are eliminating use of space in individual buildings and supply chain facilities for data storage. But, have you thought about how consolidation and freeing up of areas devoted to on-site server storage will impact supply chain processes?
The Data Storage Industry Will Consolidate
Hard drive-based vendors will experience fewer sales of hard drive storage solutions, and more companies will shift to flash storage, explains CRN.com. As a result, consolidation of existing solutions will take place. Unfortunately, consolidation may lead to challenges for supply chains and businesses around the globe.
For example, challenges may include trouble locating a nearby authorized service provider to make repairs to hard drives and trouble finding on-site storage solutions for companies that have not yet moved storage to the cloud, as explained in Part II. However, flash-based storage companies will see an uptick in depot repairs, recycling and replacement operations through OEM and third-party service providers, such as Flash Global. In other words, consolidation will be mitigated by increasing support to business-to-business partners and end users during the migration of storage from hard drive-based solutions.
Servers Will Replace On-Site Data Storage
During 2016, the sale of servers declined. However, the use of servers in data centers increased simultaneously. This indicates more companies are moving away from in-house data storage. Furthermore, an increasing ability to use flash-based technology in off-site storage servers, greater access to multiple servers via flash storage and software-defined storage protocols — in response to the NAND shortage as discussed in Part I of our series — in servers will push companies toward outsourced server storage in the coming year.
In the past, companies have traditionally used off-site servers on top of existing, in-house storage servers, but 2017 will see that trend dissolve. Instead, companies will begin routing all storage needs to off-site storage centers through accessible, compatible data transmission lines, as explained in Part III. For supply chain organizations, off-site storage will enhance security initiatives and provide an additional layer of protection for their data. A consequential decrease in overhead, made possible through off-site data server use, will provide additional capital for expanding operations or reducing costs to end users.
Data Storage Consolidation Trends: Final Thoughts
Like other industries, consolidation will provide customers with more information about newer products and storage solutions. Meanwhile, off-site servers in data centers will continue to replace on-site storage, freeing up valuable space for companies. Furthermore, consolidation and relocation of data will provide a boost to companies around the globe, including those involved in logistics and supply chain management.
As the world of data storage grows more competitive, you will need to enhance as many of your supply chain operations as possible. To find out more about boosting supply chain management in your company, contact Flash Global today.