NETWORK WORLD NEWSLETTER: MIKE KARP ON STORAGE IN THE ENTERPRISE
11/09/04
Today's focus:  The SOCs advantage

Dear [EMAIL PROTECTED],

In this issue:

* System-on-a-chip
* Links related to Storage in the Enterprise
* Featured reader resource
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Today's focus:  The SOCs advantage

By Mike Karp

Small and midsize businesses represent a fast growing 
marketplace for storage vendors. When software vendors that are 
used to selling into the enterprise or to mid-tier companies 
look "down market," their challenge frequently involves taking 
an existing product and reducing the functionality within it to 
something that is saleable to smaller companies. 

A typical development scenario might have one engineering group 
turning off modules of code while another group simplifies the 
user interface. An alternative scenario has the vendor acquiring 
some smaller company that has a product to address the SMB 
space, and then rebranding the SMB product and selling it as a 
separate product line.

Deactivating large bodies of code and then making sure the rest 
of the product works is by no means a trivial task, but it is 
typically much easier to do than starting up an SMB development 
project from scratch, and offers the added (and hugely 
important) benefit of not having to maintain multiple code 
bases.  A product might have only 30% of its code functioning, 
but in these days of large disk drives that is not much of a 
price to pay and probably wouldn't deter many buyers at all.

In many respects, it is often a greater challenge for hardware 
vendors to move down market.

Price is probably the most frequent determiner of what gets 
purchased by SMBs, which means that all vendors aiming at SMB 
markets must drive their products toward acceptable price 
points.  Obviously, this requires them to squeeze as much cost 
out of the process as is possible in order to support low prices 
while still providing themselves with adequate margins.

Some hardware vendors acquire a line of storage products from 
another company, OEM-ing them under their own name.  This 
approach gives away margin points to the supplier, but of course 
saves what might be a huge amount of development expense.  
Others learn to develop their products internally, but build in 
cost-reducing technology along the way.

The system-on-a-chip (SOC) is such a technology.

SOCs integrate many components on a single chip. When I wrote 
about SOCs six months ago ( 
<http://www.nwfusion.com/newsletters/stor/2004/0524stor2.html> 
), I mentioned the cost-reduction opportunities that would 
become available to vendors when real estate and power 
requirements were curtailed due to using these smaller 
components in place of boards stuffed with multiple processors 
and protocol ASICs.

Some SOCs can offer additional advantages however. For example, 
the SteelVine technology from Sunnyvale, Calif.'s Silicon Image 
includes tool kits that make it easy for OEMs to access a range 
of high-availability features that already reside within the 
chip. Using tool kits such as this to turn on built-in software 
that provides hot-plugability or disk rebuilding capability 
means a vendor won't have to invest in developing its own 
intellectual property in this area, which of course offers 
additional potential for wringing more cost out of the R&D 
process.

SOCs aimed at the low end of the market may offer another cost 
advantage:  if they can be cost-effective for use with consumer 
products as well as for computer storage systems, additional and 
perhaps significant cost advantages may accrue as the SOC 
builders begin to benefit from efficiencies of scale.

Beyond cost savings, we see an additional potential advantage - 
SOC builders may come to provide so much on-board capability in 
their products that vendors may find they can offer 
enterprise-level capabilities while still hitting their targeted 
price points. Whether this will happen, and whether or not the 
vendors will then pass the savings downstream to their customers 
is something we will have to wait to see.

If that ever happens, even here in Boston we might be tempted to 
say "Go SOCs!"
_______________________________________________________________
To contact: Mike Karp

Mike Karp is senior analyst with Enterprise Management 
Associates, focusing on storage, storage management and the 
methodology that brings these issues into the marketplace. He 
has spent more than 20 years in storage, systems management and 
telecommunications. Mike can be reached via e-mail 
<mailto:[EMAIL PROTECTED]>.
_______________________________________________________________
This newsletter is sponsored by Cisco Systems 
Special Report:  Bridging the Gap; Enterprise ROI 

IT professionals today don't indulge in the latest-greatest 
technology for their own sake; instead they concentrate efforts 
on projects that are most likely to help achieve business goals. 
Read about the challenges and opportunities when IT starts 
'bridging the gap' and directly contributes to enterprise ROI. 
http://www.fattail.com/redir/redirect.asp?CID=87995
_______________________________________________________________
ARCHIVE LINKS

Archive of the Storage newsletter:  
http://www.nwfusion.com/newsletters/stor/index.html

Breaking storage news and analysis:
http://www.nwfusion.com/topics/storage.html
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