The cloud computing market has grown rapidly over the past few years, with 451 Research projecting a value of $14.6 billion for the entire industry by 2016. The phrase “cloud computing” has been around since 1997, according to GCN. A year after the industry coined the phrase, VMWare launched, providing access to virtualization software. It’s been a long road for cloud computing, but it’s paid off for companies and investors alike. Dropbox is currently valued at $8 billion, while Read Write reports that Amazon Web Services is projected to be as high as $30 billion. It’s clear that cloud storage is the darling of technology companies, enterprises and investors alike. The question is, what is so appealing about the top cloud services that garners this much growth and attention?

Universal Appeal

Some cloud computing technology, such as platform as a service and infrastructure as a service, appeal to a specific, small audience. Cloud storage, on the other hand, has a universal appeal that works on consumer levels up to C-level executives. The widespread adoption of Dropbox and iCloud familiarized consumers with the concept of cloud storage, making it a useful alternative to a USB drive or an external hard drive instead of confusing technology. The seamless integration of Dropbox software on a consumer’s computer also helps, as it makes the cloud storage process no harder than saving a file to the hard drive. Google Drive is another cloud storage option that benefits from seamless integration. It works alongside other Google web services, such as Gmail, providing a supplement to applications consumers use day in and day out.

Businesses use cloud storage for redundant, reliable backup solutions, facilitating a mobile workforce and flexible content delivery. The main barrier with cloud storage business adoption is security concerns, which cloud storage providers answer in several ways.

Developing Technology

The cloud market is in a period of rapid growth currently, leading to technological innovations that continue to make these services desirable. Many cloud storage services have companion apps that allow users to access files through their phones. They also expand features on their services so users have image galleries, comments, easy sharing and collaboration tools provided. Another technological advancement for cloud storage is making it greener and more energy efficient. With the exception of content delivery networks, cloud storage servers don’t generally need a great deal of power to handle users uploading and downloading their data. Lower powered chips and servers help drive down data center costs, improving cloud storage’s carbon footprint.

Competition

One fear that the tech investment world has is a cloud storage bubble bursting. As Dropbox, Amazon Web Services and other cloud storage providers acquire larger user bases and expand their audiences, new companies continue to enter the fray. Not all of the cloud storage companies will walk away unscathed once the bubble finally bursts, but the real question is where to put your investment dollars. Dropbox is actively courting enterprise users these days, but its focus on consumers may hurt it in the long run. Security concerns are the big question with Dropbox, as it enters a field where companies such as Box have a pristine security reputation. Smaller cloud companies also are shifting focus on the enterprise market, as Dropbox has the primary brand recognition with consumers and Google Drive is setting itself up to take a sizable portion of consumer interest.