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Claranet | Stop Comparing Cost of Storage

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Real Cost of Storage White Paper 3 Introduction: We Spend a lot on Data Storage In 2015 $99.4 billion was invested in enterprise IT infrastructure (servers, storage, and ethernet networks 1 ) according to IDC. This is expected to reach $115 billion in 2019. Leading the charge are private and public cloud platforms with double figure CAGR, whilst traditional IT architecture investments, which still make up two thirds of expenditure, will decline at a compound rate of -1.7% per annum to approximately half of all enterprise IT infrastructure spend. Data storage makes up a large percentage of this total spend so it is natural for any business to focus on data storage when looking to save money. As organisations move from a traditional infrastructure model to a cloud model (private, public, or hybrid) it is also natural for the business to ask IT how its current spend compares with that of the cloud world. Immediate comparisons are then made between what the business presently pays for its on- premises traditional SAN based model, with that of a public cloud storage service such as Amazon's S3. And this is where things get confused. On-premises SANs and Amazon's S3 are not comparable and neither could do the job of the other. This whitepaper explores the challenges of comparing the cost of storage, some common use cases and approaches and offers advice on how to effectively budget for data storage services. Bimodal IT – What Data Storage Service for What Mode? The virtualisation revolution has meant that infrastructure services are now more agile and portable. The global adoption of e-commerce, mobile devices and 'apps', and the internet of things means competition for customers is fierce and businesses are always seeking a competitive edge through innovation and time to market advantage. As a result, there has been a huge surge in demand for responsive Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) models, a lot of which has manifested itself as 'shadow IT' that IT is struggling to wrestle control of. IT departments are now trying to run the traditional applications that the business has been dependent upon for decades in a traditional infrastructure architecture model, but at the same time respond to internal demand for accelerated application development by means of a more agile 'cloud' model – self-service, elastic, scale-out, consumption based. In 2014, Gartner introduced a prescriptive organisation model for enterprise IT called "Bimodal IT." It suggests that enterprise IT architecture now has two modes: Mode 1 is a traditional model, focused on stability, control and efficiency; while Mode 2 is an experimental, agile mode focused on time-to-market, rapid application evolution, and in particular, tight alignment with business units not necessarily IT. Mode 1 is generally a predictable persistent workload, whilst Mode 2 is unpredictable and elastic. With bimodal IT in mind, it isn't realistic to compare the cost of storage in Mode 1 vs. Mode 2. In each mode, there will be different use cases, characteristics and demands with completely different cost profiles. Determining which mode you are planning to deliver data storage services to is critical before you begin to compare costs. 1 IDC Forecasts Worldwide Cloud IT Infrastructure Market to Grow 15% Per Annum to 2019, Driven by Public & Private Cloud Expansion, $32.6Bn spent on cloud infrastructure plus $66.8Bn spent on traditional infrastructure. It is natural for any business to focus on data storage when looking to save money. As organisations move from a traditional infrastructure model to a cloud model (private, public, or hybrid) it is also natural for the business to ask IT how its current spend compares with that of the cloud world. There has been a huge surge in demand for responsive Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) models, a lot of which has manifested itself as 'shadow IT' that IT is struggling to wrestle control of.

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