Cloud Storage Subscriptions Predicted to Reach 1.3 Billion by 2017

By Karla Robinson
September 10, 2012

New data from IHS iSuppli shows that cloud-based storage subscriptions are expected to pass the half billion mark this year, a sizable increase from the 300 million in 2011.
Next year, the growth is expected to remain high at 25 percent for a total of 625 million subscriptions. By 2017, IHS iSuppli expects 1.3 billion cloud-storage subscriptions.
Independent providers such as Dropbox have been strong players in the early cloud market, but powerful consumer technology and IT companies are now crowding in with new cloud services — Apple’s iCloud, Amazon’s CloudDrive, GoogleDrive and Microsoft SkyDrive, for example.
“The big question is how many of these consumers are using the freemium, as opposed to the paid, versions of these products,” notes GigaOM.
“Profitability is the tricky part. Ragdish Rebello, Ph.D., IHS’ director for consumer and communications, said these companies should realize — if they don’t already — that cloud services in and of themselves are not profitable so these vendors better be prepared to identify and provide value-added services that actually make money.”

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