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MinIO 2023 Predictions: Multi-Cloud and Object Storage Predictions for 2023


Industry executives and experts share their predictions for 2023.  Read them in this 15th annual series exclusive.

Multi-Cloud and Object Storage Predictions for 2023

By AB Periasamy, Co-founder and CEO of MinIO

Predictions for 2023 are made against a fundamentally different backdrop than previous predictions. The cost of capital isn’t zero, the economic headwinds are stiff and picking up and enterprises are actively looking at cutting costs without sacrificing agility, flexibility or scale. In these challenging times, there will be winners, loser and invariably dislocation. Here are some thoughts on what 2023 holds in the storage industry:

Cost optimization will be the #1 priority in an uncertain economic environment.

Given the current economic outlook, companies will focus on cost optimization and savings in 2023. Following multiple years of 30% to 50% growth in the major public clouds, we expect to see that slow as more companies look to optimize their workloads - and costs - next year. This will usher in an age of cloud neutrality - where the operating model and economics are on equal footing with physical location (public cloud). The growth was previously driven by optimizing for flexibility and elasticity, but the VC-funded wealth-transfer to the big three is over for now, and for predictable workloads, they will repatriate or introduce other clouds to create cost competitiveness.

In a multi-cloud world, object storage is primary storage.

Right now, databases are converging on object storage as their primary storage solution. This is driven by performance, scalability and open table formats. One key advantage in the rise of open table formats (Iceberg, Hudi, Delta) is that they allow for multiple databases and analytics engines to coexist. This, in turn, creates the requirement to run anywhere - something that modern object storage is well suited for.

The early evidence is powerful, both Snowflake and Microsoft will GA external tables functionality in late 2023. Now companies will be able to leverage object storage for any database without ever needing to move those objects directly into the database, they can query in place.

Times are going to get very tough for appliance vendors.

Vendor pricing will be under a microscope in 2023 and that is more bad news for appliance vendors - many of which have struggled mightily with the growth of the cloud operating model and containerization. Commodity hardware is becoming the architecture of choice for large scale deployments for performance, price and the flexibility to choose a best of breed software provider. Further, because there is no integration lock-in, customers have choice and that optionality drives superior pricing. As the whole industry shifts to be more open and multi-cloud, appliance vendors will come under tremendous pressure.

In 2023, data security gets a makeover.

Security is the #1 concern in every survey you read - from container security to ransomware. This does not change in 2023 but how business resilience is measured does. What this means is that restore times become more important, continuity becomes paramount and data infrastructure gets the same attention as detection and attack surface. The reason is simple. CISOs, and even CEOs, know that the attacks will not stop, and that recovering from them becomes as important as securing the data from them. Detection, while still critical, will increasingly share importance with preventing theft and successful ransomware attacks.

This will emphasize data immutability, restore throughput and/or continuous replication that are object storage oriented - further pressuring the legacy SAN/NAS players.


The multi-cloud storage market continues to grow and, by 2032, is likely to reach $111.33B. The growth is likely to be uneven - fueled disproportionately by the technologies that deliver software-defined, performant and scalable solutions. It is a multi-cloud world for the foreseeable future - something we predicted on these pages a couple of years back. For mono-cloud players - the bill comes due in 2023.




Anand Babu Periasamy is Co-founder and CEO at MinIO, a pioneer in high-performance, Kubernetes-native object storage. In addition to this role, AB is an active investor and advisor to a wide range of technology companies. AB is one of the leading proponents and thinkers on the subject of open source software - articulating the difference between the philosophy and business model. He is also an active contributor to a number of open source projects and also servers on the board of the Free Software Foundation India.

Published Friday, November 11, 2022 7:32 AM by David Marshall
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