Controlling Infrastructure and Software Costs in the Private Cloud

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Organizations choose private cloud deployments over public when they want to combine the increased flexibility of the cloud model with the privacy and security of their own control. Private cloud is also more scalable, flexible, agile, easy and efficient than traditional IT infrastructures of the past. As a result, IDC predicts in 2017 there will be $17.2B in infrastructure spending for private cloud, including money spent for on-premises and hosted private clouds.  However, all of that hardware won’t be of much use without software to enable it. 

When implementing private cloud, organizations are hit with the double whammy of hardware infrastructure costs and annual software licensing costs.  This is especially true when it comes to storage infrastructure software. For example, Software Defined Storage (SDS) solutions are typically licensed by capacity and thus their costs are directly proportional to hardware infrastructure storage expenses. One way to tackle both the hardware and software costs associated with storage is by including data reduction software in your private cloud.  Data reduction drops storage costs because it reduces storage capacity consumption.   For example, deduplication and compression typically cut capacity requirements of block storage in enterprise deployments by up to 6:1 or approximately 85%.

Consider a private cloud configuration with a 1 PB deployment of block storage infrastructure and SDS.  Assuming a current hardware cost of $500 per TB for commodity server-based storage infrastructure with datacenter-class SSDs and a cost of $56,000 per 512 TB for the SDS component, you would pay $612,000 in the first year.  But wait, software subscriptions are annual, so over three years you’ll actually spend $836,000 for that 1 PB of storage and over five years, $1,060,000.

Now consider that same configuration with 6:1 data reduction.  Over five years the cost of hardware and software is cut to $176,667 resulting in $883,333 in savings as a result of deploying data reduction.  And that’s not accounting for the additional substantial savings in power cooling and space.

Bottom line: data reduction makes private clouds more affordable than ever. So why aren’t you deploying private cloud with data reduction?

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Tom Cook

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