NETWORK WORLD NEWSLETTER: MIKE KARP ON STORAGE IN THE ENTERPRISE
11/23/04
Today's focus:  Storage purchasing drivers

Dear [EMAIL PROTECTED],

In this issue:

* The operational and capital expenses of storage purchasing
* Links related to Storage in the Enterprise
* Featured reader resource
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Learn how to effectively measure employee productivity, manage 
IT investments and reduce the Total Cost of Ownership in 
enterprise data management.  Visit Intel's IT Productivity 
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Today's focus:  Storage purchasing drivers

By Mike Karp

Two countervailing forces are driving much of IT purchasing 
these days. The first results from the happy circumstance that 
the cost of actual physical storage is diminishing.  Disk drive 
technology has enabled a predictable curve that provides larger 
capacity disks that take up lessening amounts of space and cost 
fewer dollars to buy.  Additionally, smaller disks require less 
power, which offers opportunities for cheaper cabinetry and 
lower running costs. 

The new serial storage protocols, serial-attached SCSI (SAS) and 
serial ATA (SATA) have also led to much efficiency in cabinet 
design.  In both cases for example, reducing the size of cables 
has meant that air flows more easily between the drives and the 
backplane. This in turn helps to reduce costs for cooling JBOD 
devices (disks that are put in arrays and typically connected 
directly to a backplane don't get this particular benefit but 
can take advantage of others). 

When it comes to tape, technologies continue to improve and 
deliver better value.  A look at the new set of Linear-Tape Open 
(LTO) products for instance shows that total storage and 
throughput also continues to improve significantly at each price 
point - roughly the same investment today provides much greater 
benefit in both categories than it did just two years ago.

The second driving force however is much less pleasant:  the 
costs associated with administering, protecting, and maintaining 
storage are rising at an alarming rate.

It is tempting to assume that the better value we receive at the 
front end whenever we purchase such new products offsets the 
increased costs for managing all our new storage.  
Unfortunately, as any manager will tell you, this is never the 
case.

It is important to differentiate here between the purchase price 
of hardware and software - the capital expense (CAPEX) - and the 
ongoing costs of operating the IT environment (operational 
expenses, or OPEX). 

The most significant difference between the two is also the most 
obvious one - a capital expense occurs just once, but you are 
stuck with the OPEX for the life of the product.  Thus, if you 
expect to keep a piece of equipment around for five years, it 
will have five years of operational expense associated with it.

More on this next time.
_______________________________________________________________
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 Intel 
IT Productivity; Increasing ROI 

Learn how to effectively measure employee productivity, manage 
IT investments and reduce the Total Cost of Ownership in 
enterprise data management.  Visit Intel's IT Productivity 
center.  Click here to download white papers, books and IDC 
Research. 
http://www.fattail.com/redir/redirect.asp?CID=88596
_______________________________________________________________
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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Bandwidth or latency? How to solve application performance 
issues 

With more users at the edge, and more of the infrastructure at 
headquarters, how are enterprises increasing business 
productivity and application performance?  Is more bandwidth the 
answer? Find out now. 
http://www.fattail.com/redir/redirect.asp?CID=88565
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