Disaggregated Storage Systems 2025: Unleashing 40% Market Growth & Next-Gen Data Agility

Disaggregated Storage Systems 2025: Unleashing 40% Market Growth & Next-Gen Data Agility

May 23, 2025
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Disaggregated Storage Systems in 2025: Transforming Enterprise Data Architectures for Unprecedented Scalability and Flexibility. Explore How This Disruptive Technology is Reshaping Storage Economics and Performance.

Disaggregated storage systems are rapidly transforming enterprise and cloud data center architectures in 2025, driven by the need for greater flexibility, scalability, and cost efficiency. Unlike traditional monolithic storage arrays, disaggregated storage decouples compute and storage resources, enabling independent scaling and more efficient resource utilization. This architectural shift is being propelled by the exponential growth of data, the proliferation of artificial intelligence (AI) and machine learning (ML) workloads, and the increasing adoption of cloud-native applications.

Key industry players are accelerating innovation in this space. Dell Technologies has expanded its PowerFlex platform, emphasizing software-defined storage that supports disaggregated infrastructure for both on-premises and hybrid cloud environments. Hewlett Packard Enterprise (HPE) continues to invest in its Alletra and Nimble Storage lines, focusing on composable and disaggregated storage solutions that integrate seamlessly with their GreenLake edge-to-cloud platform. NetApp is also advancing its ONTAP software to support disaggregated architectures, targeting enterprises seeking to modernize their storage for hybrid and multi-cloud deployments.

The adoption of NVMe-over-Fabrics (NVMe-oF) is a critical enabler, allowing high-speed, low-latency connectivity between compute and storage nodes. Companies such as Intel and Samsung Electronics are at the forefront of developing next-generation NVMe SSDs and controllers, which are essential for the performance demands of disaggregated storage. Meanwhile, Broadcom and Marvell Technology are providing advanced networking and storage connectivity solutions that underpin these architectures.

In 2025, hyperscale cloud providers and large enterprises are leading the adoption of disaggregated storage, seeking to optimize infrastructure for AI/ML, analytics, and high-performance computing workloads. The flexibility to scale storage independently of compute is particularly attractive for organizations managing unpredictable or rapidly growing data volumes. Additionally, the rise of open standards and open-source software—such as the Storage Performance Development Kit (SPDK) and Ceph—further accelerates innovation and interoperability in the sector.

Looking ahead, the market for disaggregated storage systems is expected to expand significantly over the next few years, as organizations prioritize agility, efficiency, and future-proofing of their IT infrastructure. Continued advancements in storage media, networking, and orchestration software will further lower barriers to adoption, making disaggregated storage a foundational element of next-generation data centers.

Market Size, Growth Forecasts, and CAGR Analysis (2025–2030)

The global market for disaggregated storage systems is poised for significant expansion between 2025 and 2030, driven by the increasing demand for flexible, scalable, and cost-efficient data storage solutions in hyperscale data centers, cloud service providers, and enterprise IT environments. Disaggregated storage, which separates compute and storage resources, enables organizations to optimize hardware utilization, reduce total cost of ownership, and accelerate deployment of new services. This architectural shift is being propelled by the rapid growth of data-intensive applications such as artificial intelligence, machine learning, analytics, and edge computing.

Key industry players are investing heavily in the development and commercialization of disaggregated storage platforms. Dell Technologies has expanded its PowerFlex line, offering software-defined storage that supports disaggregation and composability for both block and file workloads. Hewlett Packard Enterprise (HPE) continues to advance its HPE Alletra and HPE GreenLake solutions, which leverage disaggregated architectures to deliver cloud-native storage experiences on-premises. Intel Corporation is a key enabler, providing high-speed interconnects and storage controllers that underpin composable and disaggregated infrastructure. Samsung Electronics and Micron Technology are also contributing with next-generation NVMe SSDs and memory technologies optimized for disaggregated environments.

From 2025 onward, the disaggregated storage systems market is expected to achieve a robust compound annual growth rate (CAGR), with most industry estimates placing it in the range of 20% to 30% through 2030. This growth is underpinned by the ongoing transition from traditional monolithic storage arrays to software-defined, hardware-agnostic solutions that can be dynamically provisioned and managed. The Asia-Pacific region, led by hyperscale investments in China, India, and Southeast Asia, is anticipated to be a major growth engine, while North America and Europe will continue to see strong adoption among cloud and enterprise customers.

  • In 2025, hyperscale cloud providers such as Microsoft and Amazon are expected to further expand their use of disaggregated storage to support multi-tenant, high-performance workloads.
  • Emerging standards like NVMe over Fabrics (NVMe-oF) and CXL (Compute Express Link) are accelerating the adoption of disaggregated architectures, with support from ecosystem leaders including Broadcom and Marvell Technology.
  • By 2030, disaggregated storage is projected to become the default architecture for new data center deployments, with a growing share of the market shifting from legacy SAN/NAS systems to composable, software-defined platforms.

Overall, the outlook for disaggregated storage systems is highly positive, with technological innovation, ecosystem collaboration, and the relentless growth of digital data fueling sustained double-digit market expansion through the end of the decade.

Core Technologies Powering Disaggregated Storage Systems

Disaggregated storage systems represent a transformative shift in data center architecture, decoupling storage resources from compute nodes to enable greater flexibility, scalability, and efficiency. As enterprises and hyperscale cloud providers seek to optimize resource utilization and meet the demands of data-intensive workloads, several core technologies are powering the evolution and adoption of disaggregated storage in 2025 and the coming years.

At the heart of disaggregated storage is the use of high-speed, low-latency interconnects. Technologies such as NVMe over Fabrics (NVMe-oF) have become foundational, allowing storage devices to be accessed over network fabrics with performance approaching that of direct-attached storage. Major storage and networking vendors, including Dell Technologies, NetApp, and Hewlett Packard Enterprise, have integrated NVMe-oF into their storage portfolios, enabling organizations to build flexible, high-performance storage pools that can be dynamically allocated to compute resources as needed.

Ethernet advancements, particularly the adoption of 100GbE and 400GbE, are critical enablers for disaggregated storage. These high-bandwidth connections reduce bottlenecks and support the rapid movement of data between storage and compute nodes. Companies like Cisco Systems and Arista Networks are at the forefront of delivering next-generation Ethernet switches and network adapters tailored for storage-centric data center architectures.

Another key technology is the rise of composable infrastructure platforms, which allow IT administrators to provision and manage storage, compute, and networking resources independently. Hewlett Packard Enterprise’s Synergy platform and Dell Technologies’ PowerEdge MX are prominent examples, providing software-defined tools to dynamically compose and recompose resources based on workload requirements.

Flash storage continues to play a pivotal role, with all-flash arrays and storage-class memory (SCM) technologies such as Intel Optane and Samsung Z-SSD delivering ultra-low latency and high throughput. These advancements are essential for supporting real-time analytics, AI/ML workloads, and high-frequency trading applications that benefit from disaggregated storage architectures. Samsung Electronics and Intel Corporation are leading suppliers of these next-generation storage media.

Looking ahead, the convergence of these technologies is expected to accelerate the adoption of disaggregated storage systems, particularly as organizations pursue hybrid and multi-cloud strategies. The ongoing development of open standards and interoperability frameworks by industry bodies such as the Storage Networking Industry Association (SNIA) will further drive innovation and ensure seamless integration across diverse IT environments.

Competitive Landscape: Leading Vendors and Innovators

The competitive landscape for disaggregated storage systems in 2025 is characterized by rapid innovation, strategic partnerships, and a growing roster of established and emerging vendors. Disaggregated storage—where compute and storage resources are separated and connected via high-speed networks—has gained traction as enterprises seek greater flexibility, scalability, and efficiency in their data center architectures.

Among the leading vendors, Dell Technologies continues to expand its PowerFlex platform, which enables software-defined, disaggregated storage for both on-premises and hybrid cloud environments. Dell’s focus on integrating NVMe-over-Fabrics (NVMe-oF) and automation capabilities positions it as a key player for organizations modernizing their infrastructure. Similarly, Hewlett Packard Enterprise (HPE) leverages its Alletra and Nimble Storage lines to deliver composable and disaggregated storage solutions, emphasizing cloud-native management and AI-driven optimization.

Pure Storage is another major innovator, with its FlashBlade and FlashArray platforms supporting disaggregated architectures and high-performance workloads. Pure Storage’s focus on simplicity, non-disruptive upgrades, and unified fast file and object storage has resonated with enterprises seeking to consolidate and modernize their storage environments.

In the hyperscale and cloud-native segment, Microsoft and Amazon (through AWS) are significant forces, offering disaggregated storage as part of their cloud infrastructure services. These companies invest heavily in custom hardware and software stacks to deliver scalable, high-throughput storage for cloud customers, often leveraging technologies like NVMe-oF and RDMA.

Emerging innovators are also shaping the market. Liqid specializes in composable infrastructure, allowing dynamic allocation of storage, GPU, and networking resources. Their platform is gaining attention in AI, HPC, and edge computing scenarios. WekaIO (Weka) offers a high-performance, software-defined storage solution optimized for disaggregated and cloud environments, targeting data-intensive workloads such as AI/ML and analytics.

The competitive outlook for the next few years suggests continued consolidation and collaboration, as vendors seek to address evolving enterprise needs for agility, cost efficiency, and performance. Open standards and interoperability will be key differentiators, with organizations like the Storage Networking Industry Association (SNIA) driving standardization efforts. As disaggregated storage matures, expect further integration with orchestration platforms and increased adoption in both traditional data centers and cloud-native deployments.

Adoption Drivers: Cloud, AI, and Edge Computing Demands

The adoption of disaggregated storage systems is accelerating in 2025, driven by the surging demands of cloud computing, artificial intelligence (AI), and edge computing. These technologies require storage architectures that are highly scalable, flexible, and capable of supporting dynamic, data-intensive workloads. Disaggregated storage—where compute and storage resources are separated and connected via high-speed networks—addresses these needs by enabling independent scaling and efficient resource utilization.

Cloud service providers are at the forefront of this shift. Hyperscalers such as Microsoft, Amazon, and Google are increasingly deploying disaggregated storage to optimize infrastructure for multi-tenant environments and to support rapid scaling. These architectures allow cloud operators to provision storage independently from compute, reducing overprovisioning and improving total cost of ownership. For example, Microsoft has highlighted the role of disaggregated storage in its Azure platform, enabling flexible scaling for AI and analytics workloads.

AI workloads, particularly those involving large-scale model training and inference, are another major driver. The need to process and move massive datasets at high speed has led to the adoption of NVMe-over-Fabrics (NVMe-oF) and other high-performance protocols in disaggregated storage systems. Companies like Intel and Samsung Electronics are advancing NVMe and memory technologies to support these requirements, with new products and reference architectures tailored for AI data pipelines.

Edge computing is also fueling demand for disaggregated storage, as enterprises deploy distributed applications closer to data sources. This trend is evident in sectors such as telecommunications, manufacturing, and autonomous vehicles, where low-latency access to shared storage is critical. Vendors like Dell Technologies and Hewlett Packard Enterprise are offering disaggregated storage solutions designed for edge environments, emphasizing modularity and remote manageability.

Looking ahead, the outlook for disaggregated storage systems remains robust. Industry bodies such as the Storage Networking Industry Association (SNIA) are standardizing protocols and best practices, which is expected to further accelerate adoption. As organizations continue to modernize their IT infrastructure to support cloud-native, AI-driven, and edge-centric workloads, disaggregated storage is poised to become a foundational technology, enabling greater agility, efficiency, and scalability across diverse deployment scenarios.

Deployment Models: On-Premises, Cloud, and Hybrid Approaches

Disaggregated storage systems are rapidly transforming enterprise IT architectures by decoupling compute and storage resources, enabling organizations to scale and manage infrastructure with greater flexibility. In 2025, deployment models for disaggregated storage are maturing across on-premises, cloud, and hybrid environments, each offering distinct advantages and challenges.

On-Premises Deployment: Enterprises with stringent data sovereignty, latency, or security requirements continue to favor on-premises disaggregated storage. This model leverages high-speed networking—such as NVMe over Fabrics (NVMe-oF)—to connect pools of storage devices to compute nodes, allowing independent scaling and efficient resource utilization. Vendors like Dell Technologies and Hewlett Packard Enterprise (HPE) have expanded their portfolios with disaggregated storage solutions, such as Dell’s PowerFlex and HPE’s Alletra, which are designed for private data centers and edge deployments. These systems are increasingly integrated with automation and AI-driven management to reduce operational complexity.

Cloud Deployment: Public cloud providers are also embracing disaggregated storage architectures to deliver scalable, high-performance storage services. Microsoft Azure, Amazon Web Services (AWS), and Google Cloud have all introduced storage offerings that separate compute from storage, allowing customers to provision resources independently. For example, AWS’s Elastic Block Store (EBS) and Azure’s Managed Disks are underpinned by disaggregated storage backends, supporting dynamic scaling and multi-tenant isolation. These services are particularly attractive for workloads with unpredictable storage demands or rapid scaling requirements.

Hybrid Approaches: The hybrid model, combining on-premises and cloud resources, is gaining traction as organizations seek to balance control, performance, and agility. Disaggregated storage systems are central to hybrid cloud strategies, enabling seamless data mobility and unified management across environments. IBM and NetApp are notable for their hybrid storage platforms, which integrate on-premises arrays with cloud-based storage, supporting use cases such as disaster recovery, cloud bursting, and data tiering. NetApp’s ONTAP and IBM’s Spectrum Virtualize exemplify this trend, offering consistent data services and APIs across deployment models.

Outlook for 2025 and Beyond: As organizations accelerate digital transformation, the adoption of disaggregated storage is expected to grow across all deployment models. Advances in networking (e.g., 400GbE, PCIe Gen5), storage-class memory, and software-defined storage are further enhancing the performance and flexibility of these systems. Industry leaders are investing in open standards and interoperability to facilitate seamless integration and management. The next few years will likely see increased automation, AI-driven optimization, and tighter integration with containerized and serverless workloads, positioning disaggregated storage as a foundational technology for modern IT infrastructure.

Integration Challenges and Solutions for Enterprises

Disaggregated storage systems, which decouple compute and storage resources, are increasingly being adopted by enterprises seeking greater flexibility, scalability, and cost efficiency. However, integrating these systems into existing enterprise IT environments presents a range of challenges, particularly as organizations transition from traditional monolithic architectures to more modular, software-defined infrastructures.

One of the primary integration challenges is ensuring compatibility between disaggregated storage solutions and legacy applications or operating systems. Many enterprise workloads were designed for direct-attached or tightly coupled storage, and may not natively support the protocols or APIs used by modern disaggregated systems. This can lead to performance bottlenecks or require significant application refactoring. Vendors such as Dell Technologies and Hewlett Packard Enterprise are addressing this by offering software-defined storage platforms that provide compatibility layers and support for a wide range of protocols, including NVMe over Fabrics (NVMe-oF), iSCSI, and Fibre Channel.

Another significant challenge is network infrastructure. Disaggregated storage relies on high-speed, low-latency networks to connect compute and storage nodes. Enterprises must often upgrade their data center networks to technologies such as 100GbE or even 400GbE Ethernet, and implement advanced network fabrics like RDMA (Remote Direct Memory Access) to minimize latency. Companies like Cisco Systems and Arista Networks are leading providers of the networking hardware and software required for these environments.

Data management and orchestration also become more complex in disaggregated environments. Enterprises need robust tools for provisioning, monitoring, and automating storage resources across distributed systems. Solutions from NetApp and Pure Storage offer centralized management platforms that integrate with popular orchestration frameworks such as Kubernetes, enabling dynamic allocation of storage to containerized workloads.

Security and data protection are additional concerns. Disaggregated architectures can increase the attack surface and complicate compliance with data governance regulations. To address this, vendors are integrating advanced encryption, access controls, and audit capabilities directly into their storage platforms. For example, IBM and Hitachi Vantara provide end-to-end encryption and policy-based data management features tailored for enterprise needs.

Looking ahead to 2025 and beyond, the outlook for enterprise integration of disaggregated storage is positive, with ongoing innovation focused on simplifying deployment and management. Industry leaders are investing in AI-driven automation, deeper integration with hybrid and multi-cloud environments, and open standards to further reduce barriers to adoption. As these solutions mature, enterprises are expected to accelerate their transition to disaggregated storage architectures, leveraging the benefits of agility and scalability while overcoming integration hurdles.

Case Studies: Real-World Implementations and Outcomes

Disaggregated storage systems, which decouple storage resources from compute nodes and connect them via high-speed networks, are gaining traction in enterprise and hyperscale data centers. This architectural shift is driven by the need for greater flexibility, scalability, and resource utilization, especially as data volumes and performance demands surge. In 2025, several real-world implementations highlight both the technical and business outcomes of adopting disaggregated storage.

One prominent example is Intel’s work with its Ethernet-based storage disaggregation solutions. Intel’s Ethernet Fabric and Optane Persistent Memory have been deployed in large-scale data centers to enable dynamic allocation of storage resources, reducing overprovisioning and improving total cost of ownership. Intel reports that customers leveraging disaggregated storage architectures have achieved up to 30% better resource utilization and significant reductions in storage-related capital expenditures.

Another key player, Dell Technologies, has integrated disaggregated storage into its PowerFlex platform. PowerFlex separates compute and storage, allowing independent scaling and management. In 2024 and 2025, Dell has highlighted customer deployments in financial services and healthcare, where the ability to scale storage independently of compute has led to faster data access and simplified infrastructure upgrades. Dell’s case studies indicate that organizations have reduced their infrastructure refresh cycles by up to 40% and improved application performance for data-intensive workloads.

Hyperscale cloud providers are also at the forefront. Microsoft has implemented disaggregated storage in its Azure cloud platform, using high-speed NVMe over Fabrics (NVMe-oF) to connect storage pools to compute clusters. This approach has enabled Azure to offer high-performance, low-latency storage services for AI and analytics workloads. Microsoft’s public documentation and technical briefings in 2025 emphasize the agility and cost savings realized by customers who can now provision storage on-demand, matching fluctuating workload requirements.

Looking ahead, the outlook for disaggregated storage systems is robust. Industry bodies such as the Storage Networking Industry Association (SNIA) are standardizing protocols and best practices, which is expected to accelerate adoption. As PCIe Gen5 and next-generation Ethernet technologies become mainstream, the performance gap between local and disaggregated storage continues to narrow. By 2026 and beyond, more enterprises are expected to transition to disaggregated architectures, driven by the need for operational efficiency, sustainability, and support for emerging workloads such as AI, machine learning, and real-time analytics.

Regulatory, Security, and Data Governance Considerations

Disaggregated storage systems, which decouple storage resources from compute nodes and connect them via high-speed networks, are rapidly gaining traction in enterprise and cloud environments. As organizations adopt these architectures to improve scalability and resource utilization, regulatory, security, and data governance considerations are coming to the forefront in 2025 and beyond.

From a regulatory perspective, the distributed nature of disaggregated storage introduces new complexities for compliance with data protection laws such as the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Organizations must ensure that data residency and sovereignty requirements are met, especially when storage resources span multiple geographic locations or data centers. Leading storage vendors such as Dell Technologies and NetApp are increasingly integrating policy-based data placement and automated compliance reporting into their disaggregated storage solutions to address these challenges.

Security is a critical concern as disaggregated storage systems rely on high-speed, often Ethernet-based, fabrics to connect storage and compute. This expanded attack surface necessitates robust encryption for data in transit and at rest, as well as advanced authentication and access controls. Companies like Pure Storage and IBM are implementing end-to-end encryption and zero-trust security models within their storage platforms. Additionally, hardware-based security features, such as Trusted Platform Modules (TPMs) and secure boot, are being adopted to protect against firmware and supply chain attacks.

Data governance in disaggregated storage environments requires enhanced visibility and control over data flows, lifecycle management, and auditability. The separation of storage from compute can complicate traditional data management practices, making it essential to deploy unified management platforms that provide granular monitoring, tagging, and policy enforcement. Hewlett Packard Enterprise (HPE) and Cisco Systems are investing in AI-driven analytics and orchestration tools to help organizations maintain compliance and governance across hybrid and multi-cloud deployments.

Looking ahead, regulatory bodies are expected to issue more explicit guidelines for distributed and disaggregated architectures, particularly around cross-border data transfers and incident response. Industry alliances, such as the Storage Networking Industry Association (SNIA), are working to standardize security and governance frameworks tailored to disaggregated storage. As adoption accelerates through 2025 and beyond, organizations will need to continuously adapt their security and governance strategies to keep pace with evolving threats and regulatory expectations.

Future Outlook: Roadmap to 2030 and Strategic Recommendations

Disaggregated storage systems are poised to play a transformative role in enterprise and cloud data center architectures through 2025 and into the latter part of the decade. These systems decouple storage resources from compute, enabling independent scaling, improved resource utilization, and greater flexibility compared to traditional direct-attached or monolithic storage models. The adoption of disaggregated storage is being driven by the proliferation of data-intensive workloads, such as artificial intelligence, machine learning, and real-time analytics, which demand high throughput and low latency.

In 2025, hyperscale cloud providers and leading enterprises are expected to accelerate deployments of disaggregated storage, leveraging high-speed interconnects like NVMe over Fabrics (NVMe-oF) and Ethernet advancements. Companies such as Intel and Samsung Electronics are at the forefront, developing next-generation SSDs and memory technologies optimized for disaggregated environments. Intel’s work on Compute Express Link (CXL) and persistent memory is particularly notable, as it enables memory pooling and sharing across servers, further enhancing the benefits of disaggregation.

Storage system vendors like Dell Technologies and NetApp are integrating disaggregated architectures into their product portfolios, offering solutions that support dynamic allocation of storage resources and seamless scalability. Dell Technologies’s PowerFlex and NetApp’s ONTAP platforms are examples of this trend, providing software-defined storage that can be managed independently of compute resources.

Industry organizations such as the Storage Networking Industry Association (SNIA) are actively developing standards and best practices to ensure interoperability and performance consistency across disaggregated storage deployments. The adoption of open standards is expected to accelerate innovation and lower barriers to entry for new vendors.

Looking toward 2030, the roadmap for disaggregated storage systems includes further integration with composable infrastructure, where compute, storage, and networking resources are dynamically orchestrated via software. The continued evolution of CXL, PCIe, and Ethernet technologies will enable even lower latency and higher bandwidth, making disaggregated storage viable for a broader range of workloads, including mission-critical applications.

  • Enterprises should prioritize investments in NVMe-oF and CXL-ready infrastructure to future-proof their data centers.
  • Collaboration with leading vendors such as Intel, Samsung Electronics, and Dell Technologies is recommended to stay abreast of rapid technological advancements.
  • Participation in industry groups like SNIA will help organizations influence and adapt to emerging standards.

In summary, disaggregated storage systems are set to become a foundational element of next-generation data centers, offering the scalability, flexibility, and performance required for the data-driven enterprise landscape of 2030 and beyond.

Sources & References

Hannover Messe 2025 - Laying the Industrial Data Foundations for the AI-Powered Enterprise

David Burke

David Burke is a distinguished author and thought leader in the realms of new technologies and fintech. He holds a Master’s degree in Business Administration from Columbia University, where he specialized in technology management and financial innovation. With over a decade of experience in the industry, David has worked with Quantum Payments, a leading financial technology firm, where he contributed to the development of cutting-edge payment solutions that are reshaping the way businesses operate. His insightful analyses and forward-thinking perspectives have been published in numerous industry journals and online platforms. David is passionate about exploring how emerging technologies can drive financial inclusivity and efficiency, making him a respected voice in the fintech landscape.

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