In a new report, Deutsche Bank analyst Sherri Scribner discussed the disruptive potential of the public cloud model. As market leaders Amazon.com, Inc. AMZN 2.28% and Microsoft Corporation MSFT pave the path forward for the transition to cloud-based models, the market shift will create a number of winners and losers in the tech space.

HDD Poised To Benefit

While a large number of investors seem to believe that cloud data centers rely solely on solid-state drives (SSDs) and NAND flash memory, Scribner pointed out that public cloud providers are increasing hard disk drive (HDD) storage capacity by 40-50 percent annually.

“The challenge for the HDD industry has been that nearline or capacity-optimized HDDs (sold to the hyper-scale cloud vendors) only represented 15 percent of revenues in 2014, or 7 percent of units,” she explained.

Deutsche Bank projects that cloud demand will make up 40 percent of HDD revenue by 2020.

Surprise Winners

In addition to HDD suppliers, Scribner sees…

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