Welcome!

@DXWorldExpo Authors: Elizabeth White, Yeshim Deniz, Liz McMillan, Pat Romanski, William Schmarzo

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Containers Expo Blog, SDN Journal

@CloudExpo: Article

Data Optimization in Cloud Storage

The crucial technology that will provide service providers with the greatest cost reduction is data optimization

The promise of "the cloud" is that cloud storage delivers users seamless "just in time" storage scalability to handle growth and quickly respond to peak loads. The economics and business impact of cloud storage also delivers a compelling financial proposition in today's budget constrained IT environments. To the IT consumer shifting what was a capital expense and a fixed cost to a variable cost operating expense is financially compelling. Additionally, the ability to function in a "just in time" mode versus a "predictive" model for consumable storage also changes the CAPEX impact further assisting in justifying an already strong value proposition for adopting cloud storage.

IDC forecasts that cloud-based storage will represent a $15.6B market by 2015 with a compound annual growth rate (CAGR) of 32%. They also predict 10,000 service providers will focus on cloud storage with a data protection emphasis. The economics of this market transition will continue to evolve and accelerate as costs of delivering cloud services are optimized by service providers that become more efficient - ever mindful of the cost of their plant/facility, operating expenses and business margins.

The crucial technology that will provide service providers with the greatest cost reduction is data optimization. Data optimization incorporates deduplication, compression and thin provisioning technologies that maximize storage efficiency. Data optimization is the most significant innovation in the storage industry, enabling organizations to save more information in a smaller physical footprint. Nowhere does the fundamental concept of storing less data dramatically change economics more than for providers of cloud storage infrastructure.

When applied to the cloud, data optimization is a disruptive technology. It increases storage efficiency on a 5X to 35X scale. In cloud storage environments the impact is simple and compelling. For a data mix that yields a 5X boost to storage efficiency, costs drop to 20% of what they previously were. In addition, reductions in floor space, power and cooling and manpower all significantly improve operating efficiency. With a clearly differentiated value proposition the disruptive nature of applying data optimization enables the service provider to grow their business by gaining market share at the competitor's expense.

Data optimization's impact on storage consumption in the cloud or in the data center yields operating efficiency and critical business advantages;

  • Reduced capital expense - in any storage environment media is a substantial expense. Disk drives and now SSDs are a significant cost because they need to be available in anticipation of demand. Reducing cost to store data will have a direct impact on the IT expense budget's bottom line. Data optimization applied here will drive down capital storage costs by 80% or more.
  • Data center operating efficiency - with a 5X increase in storage efficiency the requirements for the cloud or data center proportionately decrease. The same data is stored on data optimized storage that is now 80% less and is delivered with 20% of existing floor space, power and cooling costs.
  • Additional benefits are realized through data optimization in network bandwidth consumption, manpower requirements, operational systems needed to support the infrastructure and overall management of the cloud service provider or data center.

Market Drivers
Worldwide data growth is consistently in the 50% per year range. The storage necessary to house this data dramatically impacts enterprise IT operations and their capital budgets. Enterprises are evaluating and planning to use cloud storage to gain business agility and manage capital cost variations. Cloud service providers compete on location, cost, reputation and SLAs. Providers must increasingly differentiate their offering either by developing technology in house or by leveraging third party solutions from major storage vendors. .

Industry analysts, well aware of the impact of continued data growth on IT budgets and the rapid adoption of cloud storage, continue to observe the impact of how data optimization significantly increases IT efficiency and recommend data optimization technologies for all phases of data storage from primary through to the cloud.

At a recent Gartner Conference, one of the keynote speakers was adamant that throwing hardware at the problem of rampant data growth will not work. His view was that IT needs to optimize storage capacity consumption with virtualization, data deduplication and bandwidth optimization. I found this to be quite a contrarian view since the platform vendors have dominated the dialogue in IT informatics. Here was a keynote speaker saying hardware is not the answer to managing the data glut...it's a software fix that we need. Later in the event another session, another speaker, and data deduplication was raised as "emerging as a top opportunity to positively impact data growth because of its ability to reduce the amount of data consuming costly storage." Additionally, the discussion also evolved to include the "green impact" of reducing the amount of data which in turn impacts floor space, power and cooling consumption. Seems that deduplication and data optimization is a win-win.

Summary
Disruptive technologies deliver competitive advantage. Data optimization is one of those technologies that can make market leaders by clearly differentiating what they offer versus their competitors. Sometimes it's economic and other times it can be technical leadership. In the case of both economic and technology leadership, a market disruptive technology, such as data optimization, will drive market share growth and enable rapid business growth at the expense of competitors.

In the case of cloud storage, the first storage systems vendor to bring cloud storage products to market with integrated data optimization technology will gain a huge advantage in the rapidly growing cloud service provider space. In addition, their products will become deeply entrenched into the cloud provider infrastructure because they reduce storage costs and increase overall operational efficiency.

More Stories By Wayne Salpietro

Wayne Salpietro is the director of product and social media marketing at data storage and cloud backup services provider Permabit Technology Corp. He has served in this capacity for the past six years, prior to which he held product marketing and managerial roles at CA, HP, and IBM.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


DXWorldEXPO Digital Transformation Stories
Contextual Analytics of various threat data provides a deeper understanding of a given threat and enables identification of unknown threat vectors. In his session at @ThingsExpo, David Dufour, Head of Security Architecture, IoT, Webroot, Inc., discussed how through the use of Big Data analytics and deep data correlation across different threat types, it is possible to gain a better understanding of where, how and to what level of danger a malicious actor poses to an organization, and to determin...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, will outline ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and...
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.