Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Memory/Storage

Consumer cloud market soars in 1H12, says report

Posted: 17 Oct 2012 ?? ?Print Version ?Bookmark and Share

Keywords:cloud service? consumer cloud? Mozy? Carbonite? SugarSync?

According to the latest data from IHS, the consumer cloud performed really well in 1H12, with the number of personal subscriptions to online storage services at the end of June already at 75 per cent of the market's projected sum for the year. The numbers hit more than 375 million, or about three-quarters of the estimated 500 million by year-end.

While no firm numbers exist to show the extent of the cloud in 2011 because it was relatively new and untested, best estimates put global subscribers then at about 150 million. Subscriptions to either free or paid cloud services will continue to climb in the years ahead, jumping to an estimated 625 million next year, and then doubling over the course of four years to reach 1.3 billion by 2017, noted the market research firm.

Worldwide Forecast for Personal Cloud Subscriptions

Figure: Worldwide Forecast for Personal Cloud Subscriptions (In Millions)
Source: IHS iSuppli Research, October 2012.

Apple, Microsoft, Google and Amazon are using their own cloud offerings to sell hardware, content and other cloud storage services. Such services are often provided at the same costor below the costof equivalent offerings from pure-play cloud storage providers such as Dropbox, Mozy, Carbonite and SugarSync.

To compete with the big players, pure-play cloud providers are adopting a freemium model in which they throw in 2-5GB of cloud storage for free, and then offer tiered pricing plans for higher levels of storage. In many cases, these service providers limit the size of files that can be stored on their storage service.

The business of providing cloud storage can be costly, however. The cloud industry will continue to lose money from pure cloud offerings, IHS believes, and independent providers will find it extremely difficult to remain financially viable. This, in turn, provides mobile network operators with an attractive opportunity to partner with the pure-play providers and to offer differentiated services.

In addition to generating revenue opportunities, cloud services can create stickiness and reduce churn among the customers of mobile operators. Users with large amounts of data stored on an operator's cloud service are likely to be reluctant to migrate their content to another operator's cloud service at the end of a contract period because of the hassle involved, so the cloud can be effectively leveraged as a tool to retain customer loyalty.

All told, the winners in the increasingly tight race among mobile providers to entice consumers to their cloud will be those that can offer a personal service supporting diverse mobile devices and computers on their network, with huge revenue growth potentially at stake.

Article Comments - Consumer cloud market soars in 1H12,...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top