Users can access files either locally or via a Web browser from the cloud. The storage service also doubles as a simple collaboration and file-sharing product.
I expect we'll see continued investment in the hybrid storage market, particularly for services aimed at small and medium-size businesses. The hybrid approach alleviates customer concerns that data and files won't be available during outages, or if the provider goes out of business.
Meanwhile, cloud-based storage makes great sense as a low-cost, low-maintenance backup solution for SMBs, and there's a huge market of small and mid-size companies in need of data storage options. In addition, while overall VC investment is down compared with previous years, IT-oriented startups are still attractive to investors.
Egnyte is an InformationWeek Startup 50 company.