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Georg Singer is a researcher in the area of cloud computing at the University of Tartu in Estonia. His research focuses on ROI, economic and business aspects of cloud computing.

How are cloud computing companies going to effect the online storage service industry?

Recently Eric Greenwood from OnlineStorage.org asked, me “..Do you have any opinions on how cloud computing companies are going to effect the online storage service industry? A view from an economic mind like yours would be very interesting!”

Aren´t online storage service providers themselves also cloud computing companies? I am a heavy (not yet paying) user of Dropbox and would say this actually is a VERY typical cloud service. Therefore I would understand the question more like: How do other cloud computing companies impact cloud storage providers? Difficult to say. I would actually assume that the main impact will not come from the cloud but from the desktop. More and more “thin” devices, like Google´s notebook, are coming out that don´t have on device storage any more. If many people switch to those devices, I assume there will not be any need any more for pure online storage solutions – as all the data is anyway in the cloud already. So I would say that the pure storage providers will have to develop into providing added value on top of storing pure data like offering albums for pictures, sorting solutions for music.

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