TwinStrata

You may have read a recent blog entry by a leading industry analyst addressing cloud storage ROI: 20TB of public cloud storage as a service at Amazon’s S3 rate of $0.15/GB per month totals $3,000 per month, or a whopping $36,000 per year. Some do-it-yourselfers responded they can build 4 storage arrays for this one-year price. But can acquiring a glut of storage capacity give your business offsite data protection? Can it instill confidence that your business will be able to survive a complete loss of your primary site data?

We recently used Clarity AP to conduct a total cost of ownership (TCO) analysis of cloud storage as an offsite replicated tier of storage accessible via our cloud gateway, CloudArray. For the analysis, we assume a company with a single site for data storage and linear capacity growth over 3 years. We calculated the 3 year TCO of an in-house implemented offsite tier of replicated storage versus replicated storage to the cloud. We plotted the capacity crossover point up to which cloud storage holds a cost advantage.

While we invite everyone to look at the full report, here’s a brief summary:

Cloud storage may make sense for capacities up to 60TB for replicated data. At these capacities, cloud storage benefits from a pay as you go model that does not suffer the underutilization experienced in storage arrays. As a remote site data protection solution, cloud storage substantially reduces the need for offsite infrastructure and management.

The chart below illustrates the crossover point:

3-yr TCO for offsite replicated storage

For the initial TB of capacity, costs for an in-house solution over a 3 year period are $233,492, compared to $79,794 for cloud storage. For 20 TB, there is a $100,000 savings when data is replicated to a cloud provider.

The report lists results, configurations and cost assumptions. The analysis purposely neglects to factor local site floor/power/cooling since some may argue these are sunk costs. It also does not address application/compute failover which is a separate analysis.

Conclusion

Based on the results of this analysis, cloud storage can be very compelling for companies replicating up to 60 TB to a public cloud. For a mid-sized company or departments within a larger organization, this represents a substantial capacity range across which cloud storage presents a strong ROI. Watch for this range to expand even higher over the course of the next 3 years with more favorable cloud pricing and tiers of service.

Can your business benefit from cloud storage? Let us know.

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Tags: cloud computing, cloud economics, cloud replication, cloud ROI, Cloud Services, Cloud Storage, cloud storage ROI, public cloud, storage as a service

This entry was posted on Thursday, November 5th, 2009 at 7:55 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.