One of my biggest challenges every day is to cut through the industry noise and get to the bottom of what vendors are selling and what customers are buying.  It is a challenge because vendors message to what they think customers want to buy (not necessarily what they have to sell) and customers want to buy what they are hearing from the industry as what they need.  The reality is a lot simpler; what customers want to buy hasn’t changed in decades.

Enterprises want to leverage their IT resources to drive more business, more revenue, more profitability.  This means that IT must be more efficient, effective, differentiating, agile, and responsive.  These are the high level wants and needs.  Each organization translates these requirements into technical specification based on some criteria such as performance, scalability, cost, simplicity, risk, etc.  How these are prioritized depends mostly on the person/organization making the decision.

The noise complicates the conversation.

Enterprise need to become operationally more efficient and cut costs.  This doesn’t mean they want to buy cheap stuff.   It is about the price only when all other variables are equal.  The industry has instilled in the users the idea that cloud is cheaper and more flexible; you pay only for what you use.  There are many ways to define what cloud is, but if we take cloud infrastructure offerings, once you really look, they may not be cheaper or more flexible.  Here are two examples to demonstrate:

  • Company XYZ needs to store 1PB of data for 7 years.  It is not clear whether data will be accessed regularly or not, but there is a need for it to be secure.  Option 1 is to use cloud storage (S3, Glacier, Google Nearline).  A single location of public storage cloud is average $0.01 per GB per month.  Without accounting for egress and transaction costs, that equates to $123 per TB per year.  Over 4 years, the cost of keeping a PB in the lowest tier of cloud, in a single location would be $503,808.  Keep in mind that depending on where the cloud data center is located, you might need to concern yourself with mother nature.  If you store two copies for geographic distribution, your cost doubles to over a million in 4 years.  Conversely, you may procure an object storage system to host 1 PB of data for $400 per TB over 4 years.  The total cost of this solution would be $409,600.  Some object storage vendors support geo-dispersal which allows you to stretch the system across 3 sites with ability to sustain site failure without data loss.  The cost of such deployment would not be different than already stated $410k.  The facility costs may be off set by the lack of egress and transaction costs.

 

  • Another Example is company ABC is running a marketing campaign and requires compute and storage resources for the duration of the program, which is 9 months.  Provisioning a decent server in the cloud with a few TB of data and snapshots may cost $210/ month.  This equates to $1,890 for the duration of the project.  You might need to add a backup client for the data, but that could be another few hundred dollars.  If you had to purchase a server, it could cost you 4,500.

No one wakes up and says, I want to go cloud.  What they really want is faster and simpler way to deploy IT resources and applications, to pay for resources that they consume only and not have to pay forward, and to simplify management of their infrastructure.  Some will be willing to pay more to achieve these results, others may not.

There is a way for some to achieve these goals on premise or in a hybrid configuration.  First, identify applications that are not core to your business and can be better served via a service provider.  This could be CRM, email, or SCM.  Then evaluate your environment for places where resources can be shared among departments.  The more an organization centralizes IT services, the more efficiency can be achieved and the greater opportunity for flexibility in how resources are assigned and consumed.  The private cloud concept is exactly this, centralized IT services where end users can select what resources they need and an orchestration and management layer that simplifies provisioning and allocation of resources and tracking of consumption.

Though there are many variables that go into any buying decision, the conversation has to start with what does the business need.  Messaging the market that cloud is the only way, cloud is cheaper and faster, all SSD or Flash is the answer to all your prayers, or that you need 32 Gbps FC when you can barely fill an 8 Gbps pipe doesn’t help users make good decisions.  Instead of the hype and the noise, let’s build, package and deliver products and services that will move the enterprise forward. I seem to have an idealistic view of the world, but a girl can dream.

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