Storage Goes Commodity

(That’s good for IoT!)David Friend, CEOBlueArchive, Inc.

ThingPower Data

What’s holding it back?• Still too expensive, especially long-term storage.

Tape, paper storage are still cheaper.• Too many sizes

Nearline, Coldline, Glacier, Infrequent Access, Reduced Redundancy, etc.

• No standard API for IoT devices to talk to S3 API almost a standard, but Google & Microsoft still fighting it

out.

Otherwise, pretty darned close.

My prediction (in fact, my mission):Object Storage becomes a commodity for IoT.

Like electricity, one size fits all. Standard API.

Object

Storage

Gas comes from hundreds of suppliers. It’s all interchangeable and comes with a standard interface.

What makes a commodity a commodity?

Standards:

Standard size. Standard voltage. Standard Octane. Standard API

In storage, the S3 API is almost a de facto standard

“The Internet of Things”

Bandwidth is already a commodity.

Storage

Bad news: Big entrenched incumbents

Good news: 1) “The dog will eat the dog food.” 2) Large markets3) Vulnerable to massive disruption

Why would anyone want to be in a commodity business?

Disruptive price or performance

1900 2000

Something disruptive happens

wikipedia

May 2, 2014U.S. Steel removed from S&P 500 index due to its declining

market capitalization.

RIP

From 1899 to 1981, AT&T was the world’s largest phone company.

1977 ad for AT&T Long distance. 21 cents per minute after 11PM.

1988. Pipsqueak MCI goes right at AT&T

11 years after attack by MCI AT&T finally decides to compete!

1984 market share: 90% 1999 market share: 40%. 1999 Market Cap: $149B2005 AT&T was acquired by SBC for $14B

Series10

20

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60

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Market Value ($ Billions)

Verizon

SBC

BellSouth

AT&TQwest

Don’t worry about what your competitors can’t do, focus on what they won’t do.

IBM APPL0

100

200

300

400

500

600

700

800

Market Cap ($ Billions)

While we’re beating up on IBM…

Made for good PR, too.

What does it take to win?

This is Blue Archive’s strategy in a nutshell.

Why do you need “Glacier,” “Nearline,” or “Infrequent Access,” etc. when hot storage costs less?

Let’s make it like electricity. A Simple. Interchangeable. A commodity!

They have 86 different cloud services

Their mission is “Your data center in our cloud”

We only do storage. It’s separate.

Why this is important to you?

©BlueArchive, Inc. CONFIDENTIAL 48

Every day 600 billion emails are sent, requiring 2,445 petabytes of storage annually

©BlueArchive, Inc. CONFIDENTIAL 49

265 million surveillance cameras produce 29,700 petabytes annually.

©BlueArchive, Inc. CONFIDENTIAL 50

Genomics data is doubling every seven months! Est. 40,000 petabytes a year within 5 years.

The Large Hadron Collider. 14 million pictures per second.

Square Kilometer

Array

Expected to produce 1 exabyte of data per day!

The total volume of data generated by IoT will reach 600 Zettabytes per year by 2020.

54Commoditized Storage for IoT - MIT Connected Things Conference 2017

Source: Cisco

©BlueArchive, Inc. CONFIDENTIAL 55

By 2020, storage will exceed 35 Zettabytes (35 million petabytes). That’s 50x the amount stored in 2010.

Source: IDC

Price Retention

Summary1. Simplification: One size fits all. You won’t need silly

artificial flavors.

2. Standardization: One API will become a de facto standard.

No vendor lock-in.

3. Speed: One speed will be fast enough for nearly

everything. You won’t need slow.

4. Safety: 11x9s, encryption at rest, hardened networks

standard

So coming soon to an airport near you.

Visit our web site after April 10.

Thanks!