Media and entertainment organizations turning to on-premises storage to combat rising cloud costs

In the world of media and entertainment (M&E) organizations, data storage has become a critical aspect. Recent years have seen an explosion in content creation, propelling the industry's storage technology market to impressive figures. Estimates indicate it will skyrocket from $10 billion in 2023 to a staggering $28.5 billion by 2032. This growth is attributed to the adoption of various storage options, including legacy on-premises solutions and outsourced cloud services offered by tech giants like AWS, Microsoft Azure, and Google Cloud.

While the public cloud has reigned supreme, some M&E entities are reassessing their strategies due to rising concerns over costs and performance issues with major providers. The fees associated with accessing data assets from these clouds, especially video files, are becoming increasingly prohibitive for many organizations. Fluctuating pricing models and limited workflow integration are further exacerbating the problem, prompting a shift towards hybrid models combining on-premises infrastructure with cloud services.

Industry regulators, such as the UK Competition and Markets Authority, have taken note of the challenges faced by users of public cloud services. Investigations have been launched into issues like high egress fees, single-cloud incentives, and technical barriers to switching providers. As the regulatory landscape evolves, potential actions to address these concerns may become clearer as investigations conclude and recommendations are made.

To counterbalance the growing pains of cloud storage, M&E IT leaders are revisiting on-premises storage architecture as part of a hybrid approach. Modern advancements have elevated on-premises technologies to levels where they can match or even surpass the cost-effectiveness and performance capabilities of public cloud offerings. Object storage technologies that cater to vast amounts of unstructured data, coupled with advanced AI tools and enhanced control over workflows, present compelling options for organizations seeking innovation and customization.

A recent study indicates a significant number of US companies are already contemplating or have begun migrating at least half of their cloud workloads back to on-premises infrastructure. If this trend is indicative of the broader industry sentiment, hybrid strategies are poised to take center stage among M&E organizations looking to optimize their infrastructure spend and extract maximum value.