Cloud storage gateway (CSG) can be described as a service used to cater to connectivity between any information technology (IT) environment and cloud storage infrastructure. CSG aims to provide secure and seamless assimilation between provider and customer and facilitate storage, encryption and replication of data. An efficient CSG works effectively in line with protocols of industry standard that operate well with the existing applications. CSG services find increased demand as they are cost effective, available for use on-demand, no application program interface (API) required, customers are free to choose provider as per choice/ need, and high availability of data among others. As problems pertaining to the incompatibility between conventional storage and public cloud based systems become evident, it is important to therefore find ways to incorporate CSG across industries for seamless operation of processes. CSG offers data duplication and compression capabilities to cater to the enhanced use of available bandwidth for fast transfer of data that help in taking decisions in time.

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Cloud storage gateway helps to provide optimized connectivity across industries such as healthcare, retail, electronics and high tech, entertainment and media, and banking, financial services and insurance (BFSI) among others. Cloud storage gateway services are available to the customers through physical and virtual storage appliances. CSG are available in three deployment models such as private, public and hybrid cloud. Hybrid cloud deployment opens up new opportunities for players in this market to explore. Furthermore, North America is the largest CSG market due to the strong presence of IT sector in this region Europe and Asia Pacific also find significant adoption of CSG with increased awareness in these regions for cloud based solutions.

Large amount of unstructured data is generated each day, small, medium and large businesses alike face problems in regards to storage and management of this data. In the event of increased penetration of mobility and generation of big data, there is increasing demand for solutions that can cater to storage, backup and recovery requirements of organizations. All the above reasons account for few factors driving the growth of cloud storage gateway market. In addition, storage on cloud offers immense cost saving as compared to on-premise storage which has intensified the growth of CSG market.

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Customer demand for improved visibility, compliance, security and manageability pertaining to cloud storage gateways is the major factor hindering the growth of cloud storage gateway market. Furthermore, lack of awareness with regards to technical expertise and high cost of investment of CSG among small and medium size enterprises poses a challenge to the growth of this market. However, players in this market are increasingly partnering with virtualization and cloud based service providers to expand their customer base worldwide. For instance, Xactly, a cloud based service provider, partnered with data security company Protegy, in order to offer security functionality to businesses that enables them to safely store data on cloud.

Some of the key players in the cloud storage gateway market include Microsoft Corporation, EMC Corporation, Amazon Web Services, Inc., Xactly Corporation, Nasuni Corporation, CTERA Networks Ltd., Emulex Corporations, NetApp India Limited, Maldivica, Agosto, Inc., and Panzura among others.

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