TwinStrata Blog » cloud storage ROI

Cloud Storage: Where’s the ROI?

Nicos Vekiarides — Wed, 21 Sep 2011 14:57:23 +0000

Return on investment (ROI) of using the cloud has recently become a popular topic of discussion, though not in a way you might expect. An interesting article by JP Morgenthal entitled There is no ROI in cloud computing presents the opinion that cloud services simply have no ROI. A second article by Joe Onisick entitled Private Cloud: It’s Not About ROI effectively repeats a similar message in the context of private clouds.

While both pieces appear controversial on the surface, they accurately portray that cloud infrastructure is not an investment – rather, cloud offers a way to displace or mitigate traditional large investments in favor of smaller recurring expenses over time. As JP Morgenthal suggests, calculating ROI in the cloud is similar to calculating ROI on a decision to eat out. Since eating out is an alternative to investing in a refrigerator full of food, you are averting an investment rather than making one.

So how does cloud storage fare in this ROI analysis? With cloud storage, the same ROI concept holds true. Cloud storage can indeed save you money when you are buying from a provider with greater purchasing power, more efficient data centers and shared, instead of dedicated administration. In fact, a recent article by Alex Williams cites a Forrester study concluding Cloud storage costs 74% less than running data storage in-house. However, there is no up-front investment to provide you a return.

Now you may astutely point out that sometimes there are capital purchases for cloud storage gear, such as cloud storage gateways or appliances. However, you are still displacing a much larger capital purchase with a smaller capital purchase and a monthly recurring bill. Effectively, a hybrid cloud storage solution reduces your up-front investment compared to traditional on-premise storage, In fact, if a hybrid solution does not reduce your investment, you may want to seek an alternative that does.

Overall, the case is quite compelling for purchasing data storage as a service. First, data storage is a depreciating asset – the cost of data storage drops significantly over time and, because you purchase through a cloud provider, you are always paying market rate for what you use instead of pre-purchasing at a premium. Second, you may realize increased IT agility using cloud storage. Enterprise storage is a major deployment effort. With cloud, you can add storage capacity in a matter of minutes, enabling your business to react faster to changing IT requirements. Having the option to subtract that storage at any time simply reinforces the agility story and is not an option with traditional data storage purchases.

But if there is no ROI for cloud storage, how can you ever convince your finance folks to move forward with it? Well, the answer lies in the opportunity cost of money that you would have put toward a significant capital investment. Perhaps that money can go toward your marketing budget or lead generation. Alternatively, the money might hire another sales resource that produces incremental revenue for the business — all while simultaneously reducing your 3-5 year total cost of ownership (TCO) of data storage.

In closing, if your on-premise data storage is at or near its capacity, consider its replacement cost. Now consider avoiding that capital purchase by using cloud storage instead — and do let us know how you decide to spend the capital you just freed up.

TwinStrata and PEER 1 Team Up to Deliver Enterprise Class Cloud Storage

admin — Mon, 31 Jan 2011 21:14:42 +0000

TwinStrata conintues to broaden its partner ecosystem with leading cloud storage providers. Here is yet another example…

NATICK, Mass. and VANCOUVER, British Columbia, Jan. 31, 2011 /PRNewswire/ — TwinStrata, Inc., the leading innovator in iSCSI SAN, data protection and disaster recovery solutions using cloud storage, today announced it has achieved Bronze Partner Program status with international hosting provider, PEER 1 Hosting (TSX: PIX), further demonstrating TwinStrata’s continued commitment to supporting the industry’s key cloud storage providers along with their customers.

Read the full press release…

Why a Massachusetts High School Picked TwinStrata CloudArray over Competition

admin — Tue, 18 Jan 2011 16:26:33 +0000

Kyle Jones, technology manager, Essex Agricultural and Technical High School in Hathorne, MA tested cloud gateway products from Nasuni and TwinStrata to meet specific IT budget and operational objectives. The reasons TwinStrata won out are worth reading about, especially if you are part of a small to medium size business considering cloud storage for either offsite backup, archive, or disaster recovery and business continuity.

Mr. Jones was interviewed recently by TechTarget Senior Site Editor, Andrew Burton where he discussed his requirements, offsite storage/data protection options, and why CloudArray was a better business and technology solution choice to handle the school’s backup to cloud storage needs.

You can read more about it here: High School Deploys TwinStrata CloudArray Cloud Storage Gateway

TwinStrata CloudArray Picked as Finalist in Storage Magazine/SearchStorage 2010 Products of the Year Competition

admin — Thu, 13 Jan 2011 18:13:40 +0000

Backup and Disaster Recovery (DR) Software and Services: 2010 Products of the Year Finalists Announced

From nearly 200 entries, the judges of Storage magazine’s and SearchStorage.com’s 2010 Products of the Year awards have selected 43 products as finalists including TwinStrata CloudArray. CloudArray was selected as a finalist in the Backup and Disaster Recovery Software and Services category which covers backup, recovery, DR, snapshot, replication, electronic vaulting, and archives.

TwinStrata CloudArray Enables Westway to Easily Cut Storage Costs Without Compromising Data Protection

admin — Thu, 13 Jan 2011 14:27:03 +0000

Westway is a company located in New Orleans, specializing in Bulk Chemical Storage and Liquid Feeds. The numerous challenges they faced included trying to figure out how to establish a way to flexibly add storage as they grew without breaking the bank and reduce onsite infrastructure complexity and costs – all targeted at cost effectively satisfying data storage and retention requirements while ensuring full data control and access and rapid recovery.

The accompanynig case study discusses Westways’ experience using CloudArray for offsite data protection that reduced their overnight backups to just a few hours making.

Enterprise class online backup and cloud storage just got easier in the Big Easy. Read more:

Cloud Storage Performance: I/O Does Matter

admin — Tue, 11 Jan 2011 13:57:42 +0000

One of the first decisions you will need to make when tuning your environment for Cloud Storage I/O is what page size you will use to perform writes to your Cloud Storage Provider (CSP). This is one of the configuration parameters you will enter when configuring a new volume in CloudArray.

Page sizing is an important consideration, and represents the smallest unit of data that will be sent to your CSP from your CloudArray appliance, or read back when needed. Choose a size that is too small and you may have to do a lot more I/Os if you need to move a lot of data in bulk. Choose a size that’s too big and you will move more data than you need to.

For example, if your application needs to read a lot of small chunks of data that don’t already reside in your CloudArray cache, then CloudArray will have to issue read requests to the CSP for each of those chunks. If each chunk was 64K in length, and they weren’t contiguous, then CloudArray might have to issue 4 separate read requests for that data. If the data were contiguous, then only 1 read request would need to be made.

Larger Page Sizes will result in more data being read than is needed for the current operation, but it may help performance if that data is needed at any point while it is still in cache. In CloudArray, you can choose variable page sizes from 128 KB (default) all the way to 2 MB. 512 KB is the recommended value for backups and in cases where there is a lot of sequential I/O.

If you do a lot of random small block I/O, you should choose the smaller default page size. This will prevent having to move a lot of empty data between your CSP and the CloudArray appliance. A large page size here will cause slower overall performance since a lot more pages will have to be written to accommodate the data requirements. Likewise, if you are doing backups, you will want the 512 KB (or larger) page size. This will result in fewer overall writes compared to a smaller block size and performance will increase.

This can have an impact in your cost model as well, but nowhere nearly as much as some vendors selling file system-based appliances would have you believe. Some CSP’s will charge a small per transaction fee for each read or write request you make. For Amazon S3 for example, the charge is $0.00001 per write transaction. And so for a 1TB backup, that amounts to 8,388,608 x 128KB transactions, or $83. If you used a 512KB page size, that would amount to 2,097,152 write transactions, or $20 for the write transaction costs. Reads are cheaper by an order of ten. That’s a far cry from the $1K+ figure for a 100GB write that another vendor would cost you.

Visit www.TwinStrata.comfor more info about CloudArray.

TwinStrata 2011 New Year Resolutions and Customer Commitments

admin — Tue, 28 Dec 2010 15:19:12 +0000

We hope your holiday was all you wished it would be and that this blog posting finds you well rested, rejuvenated, and still enjoying the cheer and joy of the season. And as you prepare for what’s certain to be a very busy and exciting 2011 in IT, we’d like to unveil a few of TwinStrata’s New Year Resolutions or should we say TwinStrata’s Year-After-Year Resolution Extensions:

1. We won’t rest on our past laurels

Our 2010 success is in the rear view mirror and although a great foundation to build upon going forward, our future success cannot be attained or exceeded without putting forth the same concerted focus on hard work, dedication, and commitment to your growing business needs. We value your trust and will strive to be your solution in 2011 for offsite data protection and disaster recovery.

2. We will continue to deliver quality solutions to solve real business problems in offsite data protection/DR

IT challenges are very real – especially for small and medium size businesses – who consider economic uncertainty, keeping pace with technology and access to adequate capital at the top of the list. Therefore, solutions ought not be complicated to deploy, difficult to use, intrusive to the business, and create vendor lock-in or dependencies. TwinStrata CloudArray, more than any of our competitors, truly “gets” the cloud. It’s not just cheap, offsite storage to us but an convergent ecosystem of fast networks, virtualization, automation and policies, diverse file and operating system environments, and a distributed enterprise infrastructure. CloudArray was designed to seamlessly enable and extend this end-to-end ecosystem to the cloud.

3. We will continue to listen and stay apprised of our customers’ cloud storage enablement needs

Customer satisfaction is derived from many standpoints – service, support, quality, product capabilities, and reliability to name a few. TwinStrata’s success is a result of listening to our customer’s needs, demonstrating our business and technological agility to meet their needs, and being able to build their growth requirements into our short, medium, and long-term strategies. TwinStrata will always endeavor to work with customers this way to become a trusted advisor and partner enabling them to seamlessly include cloud storage in their plans.

4. We will continue to stay true to our core CloudArray solution values and avoid “miracle” solutions

Technology usually flops when it claims to be more than it can be/do or even should be. TwinStrata’s value proposition is to provide businesses with innovative, best-in-class iSCSI storage solutions for enterprise-class offsite data protection and disaster recovery. TwinStrata’s core value is to enable businesses of all sizes to adopt cloud storage easily, securely, and economically without business interruption or change. These core values will only continue to advance in 2011.

5. We will continue to ensure our solution claims match our substantiations

TwinStrata is confident in its CloudArray solution to enable offsite data protection and disaster recovery. Our confidence and our claims really stem from our customers including these proven testimonial areas: 1) Overall peace of mind CloudArray brings to them as a result of the product quality and reliability, 2) Ease and simplicity of deployment and usability, 3) Seamless and secure integration with cloud storage providers, 4) Investment protection from not having to change applications or policies, 5) Immediacy of business and operational results, and 6) Quantifiable savings – time, capex/opex, and resources – delivered by CloudArray.

6. We will continue to strive to support our customers’ cloud storage goals – tactical and strategic alike

We believe that cloud storage will have a breakout year in 2011. And TwinStrata CloudArray will be leading the way with innovative ways to help businesses plan and justify tactical uses of the cloud for offsite data protection, DR, and other storage initiatives. Additionally, TwinStrata will continue in 2011 to advance how CloudArray can help companies’ today build and implement business continuity strategies that were once financially unattainable to small and medium size business.

TwinStrata understands that our customers are a vital part of our growth and success. We value your trust in our company, and are committed to working harder to bring you the levels of innovation, quality, reliability, and support you’ve come to expect from TwinStrata to meet your business expectations in 2011.

Thank you and Happy New Year!

BNMC Relies on TwinStrata CloudArray and Best Practices to Avoid Disastrous Data Loss

admin — Thu, 23 Dec 2010 15:34:23 +0000

Customer Success: Critical Business Data Saved

BNMC; a Mass. based strategic information technology (IT) network services company, selected TwinStrata CloudArray® to provide backup services for their clients. A virtual appliance that runs on VMware, CloudArray can be deployed for backup, archive, or disaster recovery/business continuity requirements. Key to effective and rapid data recovery in the event of a site disaster is CloudArray‟s metadata so protecting this critical information is top of mind for system administrators. Eryck Bredy, BNMC President & CTO, has always been an advocate of following best practices and one day, he averted a disaster as a result. You see, Eryck accidentally deleted the CloudArray VM he was working on, rendering it terminal. This VM had 1TB of customer data on it. But Eryck wasn‟t worried. He knew that he could easily recover the data with CloudArray since he did, in fact, follow best practices, and had backed up the CloudArray configuration data. And because there was a full copy of the data in the cloud, he knew CloudArray was imminently recoverable in and of itself. After accidentally deleting the CloudArray VM (CAVM1), Eryck simply imported a new CloudArray VM (CAVM2), reset t he cache, and restored the backup of CAVM1 to CAVM2. That was it. When CAVM2 was powered on, it replayed the metadata and back-filled its cache with the data from the cloud on an as needed basis. Because of the rapid and seamless recovery capabilities of CloudArray, BNMC business interruption was avoided. And since all user data was in the cloud, CAVM2 simply re-enabled access to it without incident.

“Bottom line – unfortunate incidents are going to happen. The important thing is to be ready when they do. Using TwinStrata CloudArray helped us mitigate the effects of losing critical data and enabled us to protect the trust our customers have in BNMC.” – Eryck Bredy, BNMC President & CTO

As widespread adoption of cloud services increases, it‟s comforting to BNMC to know that solutions like CloudArray are in place to help. For Eryck, the combination of CloudArray and BNMC best practices helped avoid a potentially disastrous situation for their clients, the loss of their critical business data.

Storage Cloud-o-Nomics

Nicos Vekiarides — Thu, 05 Nov 2009 23:55:31 +0000

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.