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| Storability 10 year Reunion |
Years ago,
a few buddies and I started one of the first cloud storage providers. Of course, we didn’t call it cloud storage back then, but we merry band of brithers (and sisters), we first generation Storage Service Providers (1gSSPs) were cloud storage way before the cloud was cool.
All the 1gSSPs –
StorageNetworks, ScaleEight, StorageWay, Sanrise, and others – failed. The core problem was and still is that renting raw capacity over the network is a lousy business model.
- 1gSSPs couldn’t sustainably buy their storage cheaper than their retail customers (although over a beer I can share some great stories of how the early 1gSSP robber-barron’s ‘negotiated’ with the storage vendors during the boom).
- SSPs couldn’t sustainably offer broad enough management efficiencies to generate profits.
- SSPs couldn’t overcome a host of logistic and cultural issues (network performance/cost, stigma/liability of releasing core data, etc).
After the bust, and the 911 attacks, the entire business
simply collapsed. Some of us – my company, Storability and others like Arsenal Digital - managed to flip over to providing managed storage services – running NOCs, and doing backups and restores for our customers. Wasn’t a great business, but we survived long enough to eventually be sold off.
For those interested in an unbiased history of the 1gSSP market, there is a thorough and thoughtful analysis from the National Center for Supercomputing Applications (NCSA), University of Illinois at Urbana-Champaign (UIUC) posted
here.
Ten years later, things look different, and the same.
A whole host of storage service providers – nee’ cloud storage providers – has arisen, not so much from the ashes of the 1gSSPs, but certainly with their dust in the new CSP DNA. These folks have it a little easier than we did back then, and I think more than a few of them are going to make an honest living this time.
In addition to the obvious improvements in network connectivity, bandwidth, and reliability, I see three critical changes that I believe will mark the difference between the past failure of 1gSSPs and the future success of today’s Cloud Storage Providers – file systems, file virtualization, and file storage gateways.