A source told The Register that EMC is feeling the pressure "from Amazon, currently estimated to have $2B in storage sales with an expected 65 per cent growth in storage revenue in each of the next 2-3 years which will make them a top 3 player in the storage industry."

The recent announcement by EMC that their much anticipated VNX2 release has been delayed is putting further pressure on the company already feeling the heat from cloud storage providers.

Feeling the heat

It has been widely discussed that increased cloud adoption would eventually eat away at compute and storage vendors, and the article above further supports the massive impact that cloud storage is just starting have. In particular when you consider that the large cloud providers also tend to shy away from Tier 1 vendors, where does this leave the likes of EMC, NetApp, companies that have been riding the explosion in data over the last two decades.

Cloud storage wars

Consider also that in the past two years the largest cloud providers have continually passed on discounts to get your business. In November last year we saw Amazon Web Services slash S3 storage prices by up to 27% across all regions.

When was the last time your vendor passed on cost reductions halfway through the lifecycle of your storage array?

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