A year ago, I wrote a two-part series on how lower cost, higher performance
on-premise storage and nearly free cloud-based storage were driving both
innovation and disruption in the storage industry. Applying Clayton
Christensen's theory of innovation and disruption to the storage industry,
my premise was that flashy startups, (e.g., Pure, Nimble, VMem, Tegile and
Tintri) that were first to introduce credible data reduction to flash arrays
were innovators but not disruptors in the space and would therefore
disappoint investors; storage incumbents (e.g., HDS, EMC and IBM) who added
data reduction would continue to survive; but the real disruptors would be
the cloud players (e.g., Amazon, Google and Microsoft). The combination of
struggling share prices, weak earnings reports, recent acquisitions, and
raging cloud revenue witnessed throughout 2015 and into 2016 conti... (more)