Hu talks about it here: I believe the next step is capacity virtualization, or thin provisioning. This year Hitachi introduced the USP V which added Dynamic Provisioning on top of the capability to virtualize external storage. Dynamic Provisioning is the ability to provision physical storage when it is actually used, not when it is allocated. It eliminates the waste of allocated but unused capacity which some estimate to be 60% or more of the average storage allocation. It can also eliminate that waste from all the copies that are usually made for backup cycles, business continuance, data mining, development and test, and data distribution. This type of virtualization also enables a volume’s capacity to be automatically leveled across many spindles of RAID protected disks, which reduces management complexity and distributes the I/O load across many more physical disk arms in order to compensate for limitations of larger and slower disks. See Hu's blog
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