Prediction #2: Hybrid data storage environments will need storage virtualization and auto-tiering to combine Cloud storage with existing storage.

Cloud storage has already become a viable option for businesses that don't have the room to add storage devices or are looking for "pay-as-you-go" storage for less critical storage needs, backups and archiving. Industry analysts have already proclaimed that Cloud gateways and heterogeneous storage virtualization solutions combined with auto-tiering functionality can provide a seamless transition path to the Cloud that preserves existing storage investments.

For most companies, the notion of moving all of their data to the Cloud is inconceivable. However, continuously expanding data storage requirements are fueling a need for more capacity. One way to address this growth is to include Cloud storage in the mix. The benefits of Cloud storage are numerous. Cloud storage can provide virtually limitless access to storage capacity and obviate the need for device upgrades or equipment replacements. Cloud storage can also reduce capital expenses. Look for continued advances in auto-tiering and storage virtualization technologies to seamlessly combine hybrid Cloud and on-premise environments in a way that operates with existing applications.