The storage industry is on the cusp of the biggest structural change since networked storage began to substitute for direct-attached storage a decade ago. Despite being one of the fastest growing technology sectors in terms of capacity, the economics for many participants are deteriorating. Several major technology shifts will radically redefine the economics of the industry leading to slimmer margins for all but the most innovative, software-driven players. In essence, the future of storage is about storage software that increasingly absorbs intelligence that used to be hard-wired in a proprietary storage controller and array, which in turn is increasingly becoming an abundant pool of commodity disks. It is the pace of this transition that is at issue. In this report, we show how the different customer segments and associated workloads will evolve at different paces, and examine the associated opportunities for both incumbents and new market entrants.