Storage Soup

Feb 22 2010   9:21PM GMT

Iron Mountain and Mimosa — A canary in the cloud?

Beth Pariseau Beth Pariseau Profile: Beth Pariseau

Iron Mountain’s $112 million acquisition of Mimosa Systems today is an admission by Iron Mountain that the concept of cloud archiving is not yet ripe. Iron Mountain bought Mimosa as an on-premise alternative to the cloud strategy it has been pursuing.

“We cannot wait for data to come to us in the cloud,” Iron Mountain Digital president Ramana Venkata told me this morning, predicting that it will be another few years yet before enterprise cloud data storage adoption picks up.

For cloud- and services-focused vendor Iron Mountain to cite slow enterprise cloud data storage adoption in its decision to buy Mimosa seems to signal an end to the wall-to-wall hype that dominated the industry discussion around the cloud last year.

Signals about this had begun to filter through in the form of two analyst reports released last month from Forrester Research and TheInfoPro that concluded enterprise data storage and IT pros are not as interested in the cloud as their vendors have been in recent months.

Taneja Group founder and consulting analyst Arun Taneja said Iron Mountain’s outlook could signal a shift to a more balanced view of cloud and on-premise data storage going forward, one that has a longer adoption timeframe than many predicted in 2009.  “Whether this is a revelation on Iron Mountain’s part that the cloud isn’t happening fast enough, I’m don’t think so,” Taneja said. “It’s more like they don’t really care – it’s clear across the industry that customers are going to need both. No broad-based supplier like this can afford to ignore that.”

According to Enterprise Strategy Group analyst Brian Babineau, ESG’s reasearch alo indicates comapnies aren’t moving to the cloud as fast as some in the industry had originally anticipated. In 2010, a soon-to-be-published ESG survey found only 17% of respondents will investigate cloud this year, Babineau said. “I don’t think we’re abandoning the cloud story, of course,” he said. “But certain applications have to evolve into the cloud, and that evolution isn’t happening as fast as some people want to see it happen.”

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