Most customers have a disaster-recovery data center, maybe it's a physical data center in another location or, in the cloud or combination of the two. We get the data there's always a copy of the data other than what's primary that they can lean back on.
In your perspective, what is the percentage of companies which have already gone through virtualization?
From my perspective, I don't have a number to back this up, I would say that well into 90 percent of the companies in Asia are already using virtualization. There are still many data center transformation projects going on but VMware in particular, which is far and away the market leader has been around for over 10 years. A lot of people, at least, are running a fraction of their data center in virtual machines. In my personal opinion, most data centers are at least 30 to 40 percent virtual.
Coming back to IoT, basically, you're saying that IoT will generate lots of data and you need to manage all that data.
That's correct. The IoT is going to create a ton of data. Gartner says as of 2013, number of connected items will be 25 billion connected items by the year 2020. Overall, the IoT adoption in APAC, would be US$57.96 billion by 2020. IDC says by 2020, there should be 29.5 billion wireless devices collected globally. Right now, there are only 5 billion. According to IDC, the IoT market will grow from 1.9 trillion devices in 2013 to 7.1 trillion devices in 2020. You can see this is triple to quadruple growth in the next five years.
With data storage available in the cloud, storage as an asset is devalued. You talk about who gets hurt by the Internet of Things and who gets hurt by these changes: disk-drive manufacturers. No one is buying 3 terabyte drives anymore, everyone sticks their data to the cloud. But a new business has been created. All the big drive vendors, now they're doing any 8, 10 and 12 terabyte disks to stick in the giant trays for the cloud providers to be able to give you more disk. So one business dies and the other picks up again. It's happening lightning fast. It's frightening to watch.
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