E003 - The Evolving Landscape of Data Storage

Simon

Hey everyone, welcome back to WeSendit Tech Talk! I'm Simon, and as always, I'm joined by Anna. Today, we're not diving into our own product updates—don't worry, those are coming soon—but instead, we're zooming out to look at the bigger picture: the wild, ever-changing world of data storage. Anna, can you believe the numbers we're seeing for global data growth?

Anna

It's honestly mind-blowing, Simon. I mean, by 2030, we're talking about up to 300 zettabytes of data worldwide. And half of that—so, like, 150 zettabytes—is expected to be in the cloud. That's just... I can't even picture what that looks like. It's like, if you stacked hard drives to the moon and back, and then did it again, and again—okay, that's a terrible analogy, but you get what I mean!

Simon

No, I totally get it. And the money flowing into cloud is just as wild. Cloud spending was around 706 billion dollars in 2022, and it's projected to almost double to 1.3 trillion by 2025. I remember, back in the early days, people used to laugh at the idea of putting your business data "in the cloud." It sounded like a joke, right? Like, "Oh, you’re just sending your files into the sky?"

Anna

And now it's just the norm. I mean, even small businesses are in the cloud. It's not just the big tech companies anymore. The whole market has shifted so fast, and now we're seeing this massive, almost unstoppable, growth. But with that, there are some big questions coming up, right?

Simon

That's exactly what we're gonna dig into today—how this explosion in data and cloud use is changing the whole storage landscape. So, let's talk about who's actually running the show in the cloud world.

Anna

Right, so if you look at the market, it's basically three giants: AWS, Microsoft Azure, and Google Cloud. Since 2015, they've just dominated. AWS is still the biggest, but their share is down a bit—around 35%. Azure's up to 20%, and Google Cloud is somewhere between 10 and 15%. But together, they're controlling over 70% of the whole cloud market.

Simon

It's wild. And the thing is, there are real advantages to that kind of scale. I mean, you get global availability, crazy fast innovation, and you can scale up or down in minutes. That's something you just couldn't do with old-school, on-premise servers. But, Anna, do you think having so much power in the hands of just a few companies is actually good for innovation? Or is it risky for everyone else?

Anna

That's such a good question. I mean, on one hand, the pace of innovation is incredible. These companies have the resources to push new features, new tech, and make things possible that smaller players just can't. But on the other hand, when three companies control so much, it can stifle competition. And if they make a change, everyone has to adapt, whether they like it or not.

Simon

Yeah, and I think that's where a lot of the current tension comes from. It's like, are these giants driving the industry forward, or are they making it harder for others to compete—or even just to have a choice? It's a bit of both, honestly. And that brings us to some of the criticisms and challenges that are starting to bubble up.

Simon

So, let's get into the not-so-glamorous side of centralized cloud. The big one is cost. It's not just expensive—it's unpredictable. You think you're saving money, and then suddenly, your bill is way higher than you expected. And it's not just storage—it's all the little things, like data transfer fees, or spinning up too many resources by accident. I've seen companies get burned by this, big time.

Anna

Yeah, and then there's vendor lock-in. I had a consulting client once who wanted to switch providers, but the costs and technical hurdles were just massive. They basically felt trapped. It's like, once you're in, it's really hard to get out. And that's not even touching on the security side—remember the Microsoft Exchange Key scandal that hit the news in 2024? That shook a lot of people's trust in these big providers.

Simon

Oh, absolutely. And then you add in regulatory uncertainty, especially in Europe. Companies have to deal with all these different laws about where data can be stored, who can access it, and so on. It makes planning really tough. And honestly, even with all the security features these providers offer, there's still this feeling of, "Do I really know where my data is, or who's looking at it?"

Anna

Exactly. It's not just about the tech—it's about trust, and control, and being able to make decisions for your own business. And that's why we're seeing more and more companies rethink their cloud strategies. Which leads us right into the next big trend: multi-cloud, hybrid-cloud, and even bringing data back on-premises.

Anna

So, here's a stat that really surprised me: 92% of companies are using multi-cloud strategies now. That means they're not just picking one provider—they're spreading their data and workloads across several. And 56% are using hybrid cloud, mixing public cloud with their own data centers. It's like, nobody wants to put all their eggs in one basket anymore.

Simon

Yeah, and get this—86% of CIOs are planning to bring at least some workloads back to their own data centers. That's the highest it's ever been. It's not about ditching the cloud entirely, but more about being strategic. Like, "What makes sense to keep in the cloud, and what should we control ourselves?"

Anna

Exactly. The reasons are all over the place—cost, performance, compliance, security. Sometimes it's just about having more control, or being able to meet specific regulations. And honestly, I think this is where things get really interesting, because it opens the door for new approaches, like decentralized storage. But before we get there, Simon, what do you think are the main strategic reasons companies are going hybrid or decentralized?

Simon

I think it's all about flexibility. Companies want to optimize for cost, performance, and compliance, and you just can't do that with a one-size-fits-all approach. Hybrid and decentralized models let you pick the best tool for each job. And, you know, it gives you a backup plan if something goes wrong with one provider. It's like having a safety net.

Anna

Totally. And that brings us to the next big shift: the rise of Web3 and decentralized storage solutions. This is where things start to get really futuristic.

Simon

Alright, let's talk Web3. So, Web3 is all about giving control back to users—moving away from these big, centralized platforms and letting people actually own their data. Decentralized storage is a huge part of that. Instead of your files sitting in one company's data center, they're split up, encrypted, and spread out across a global network of independent nodes. It's a totally different way of thinking about storage.

Anna

Yeah, and there are some really cool platforms leading the way—like Storj, Filecoin, and of course, WeSendit. What I love about WeSendit is that it's kind of a bridge between the old world of Web2 and the new world of Web3. You get the user-friendly interface you're used to, but with all the benefits of decentralized tech under the hood. It's like, you don't have to be a blockchain expert to use it.

Simon

Exactly. And that's so important for adoption. If you make it too complicated, people just won't bother. But if you can make it easy and familiar, suddenly a lot more people are willing to give it a try. And the benefits—like more control, better privacy, and real data sovereignty—are huge, especially for businesses that have to deal with strict regulations.

Anna

And it's not just about privacy. Decentralized storage can also be more resilient, because there's no single point of failure. If one node goes down, your data is still safe. It's a really exciting shift, and I think we're just at the beginning of seeing what it can do.

Anna

So, let's dig into the pros and cons. On the plus side, decentralized storage offers greater security, true data sovereignty, and often lower costs—especially since you can avoid those nasty egress fees that centralized providers love to charge. And for some companies, like a medtech startup I heard about, decentralized storage actually made it easier to meet regulatory requirements, because they could control exactly where their data was stored.

Simon

Yeah, but it's not all sunshine and rainbows. There are real challenges, too. The technical complexity is higher, companies are still somewhat cautious, and there will be new security risks. Web3 companies therefore, face the challenge of considering all possible risks at this early stage and nipping them in the bud if possible. Since trust in the market is only just beginning to grow, there is no room for any incidents.

Anna

I see it exactly the same way: companies that make the effort will ultimately benefit from greater flexibility and security. I am very positive about the whole thing and think that the time will come when Web3 technology will be part of everyday life and will be considered “normal.”

Simon

I agree. It is now common practice to store data in one of the three major clouds. Research indicates that the market potential is enormous. Forecasts predict that the market for decentralized cloud storage will grow to over one billion dollars by 2030. Therefore, there is significant momentum in this area.

Anna

And that's a good thing, because data protection, compliance, and sustainability requirements are becoming increasingly important. And that's where decentralized solutions really shine.

Simon

So, where does all this leave us? Well, according to WeSendit's Team—and honestly, I agree with them—the shift to decentralized storage is gonna be gradual. Companies are gonna test it out, see what works, and then start integrating it more and more. It's not a flip-the-switch kind of thing.

Anna

Yeah, and the future is looking hybrid. The best solutions are probably going to combine the strengths of both centralized and decentralized systems. That way, companies get the flexibility to choose what's best for each workload. And there's a sustainability angle, too—decentralized storage can actually use less energy, since it doesn't rely on massive data centers. That's a big deal for companies trying to lower their carbon footprint.

Simon

Definitely. So, if you're a company thinking about moving to hybrid or decentralized storage, what should you look out for? I'd say, start by really understanding your data—what needs to be fast, what needs to be secure, what needs to stay local. And don't be afraid to experiment. Try out a proof of concept, see how it fits your needs, and keep an eye on the regulatory landscape, because that's changing fast.

Anna

And invest in education! Make sure your team understands the new tech, especially things like cryptographic keys and smart contract security. It's a learning curve, but it's worth it. And always, always vet your providers—look at their security, their incentives, and their track record. It's a new world, but with the right approach, it can be a really exciting one.

Simon

Couldn't have said it better myself. Alright, that's a wrap for today's episode. Thanks for joining us as we explored the evolving landscape of data storage. We'll be back soon with more updates and deep dives—so stay tuned!

Anna

Thanks so much for listening, everyone! Please leave a like if you enjoy this content and share this podcast with your network. Simon, always a pleasure chatting with you. See you next time!

Simon

You too, Anna. Take care, everyone—bye!