Just one day after a dinner with Hitachi Data Systems and emerging web companies, Techcrunch announces that new player SmartSheet which offers online spreadsheet products is choosing to go with Amazon’s S3 services.
Online Data Storage is a cheap and fast way to get storage, small emerging companies don’t want to hire a Sys Admin, Storage Admin, and then buy HW and SW to install and support. The other benefits include a pay as you go model, and nearly unlimited scalability. As Hu learned from Jeff McManus, for the companies that do make it big, they’ll have to switch to their own internal enterprise storage offerings, perhaps keeping the data closer and safer.
Is Online Data Storage the future for emerging companies? Will this be the common entry point to get up and running?














If the costs are lower (staffing, HW, SW, training, support), then expect an increasing demand from companies wishing to outsource and focus on sales/marketing. Software as a service is a great and flexible model, especially for startups.
Other industry examples of vertical service providers include VoIP, electricity, insurance, and the mortgage industry. As data storage becomes more of a ubiquitous utility, expect it to follow a similar route.
Posted by Mario Vellandi on December 8th, 2006 at 4:52 pm