To: Douglas Nordgren who wrote (3511 ) 6/27/2001 6:24:19 PM From: Douglas Nordgren Respond to of 4808 Byte and Switch - Storage Services Surveybyteandswitch.com Introduction Startup storage service providers have been popping up all over the place in the past year or so ? demonstrating that technologies once reserved for data centers could form the basis of all sorts of new services offered over telecom networks. Some of those services are already becoming established, like disaster recovery and remote mirroring. But that's just for starters. The rollout of optical networking technologies in carrier backbones promises to cut the cost of high bandwidth connections ? and that could considerably broaden the potential market for storage services (see A Taxonomy for Storage Networks ). Could, however, is the operative word. Right now, it's tough to figure out whether all the fuss about storage services is just another example of vendor marketing machines getting overheated, as some of them did over ASPs (application service providers). What's needed is less hot air and more cold ? hard facts about who's planning to deploy storage networking equipment in telecom networks, what sorts of services they're planning to offer, and when those services might start generating revenues. With this in mind, questions covering these topics were included in a recent telephone survey of 300 telecom operators jointly organized by Light Reading, Byte and Switch's sister publication covering optical networking technologies, and tele.com, a trade magazine targeting service providers. The full results of the survey, which covered the deployment of optical technologies in carrier backbones and the rollout of services over this infrastructure, will be published shortly in Light Reading . However, the results regarding telecom operators' plans to deploy storage networking equipment and roll out storage services are provided in this report. Here's a quick summary of the main findings: A significant proportion of survey respondents ? 57 percent ? have already deployed storage networking technology. That's likely to increase to 74 percent by the year 2003. See: Deployment Plans for the details. Storage services will generate a significant proportion of overall revenues for a rapidly growing number of service providers. See: Revenue Projections for the details. Disaster recovery will remain the most widely deployed service for the next couple of years, but remote mirroring services will almost catch up over this period. The fastest growth applications are likely to be video on demand and data center outsourcing. See: Service Plans for the details. For more information on the survey itself, see: Methodology and Who was Surveyed?