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David Merrill's Blog - The Storage Economist

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The Storage Economist

IT as a Profit Center

For decades, IT departments have been a cost center. Information technology is a cost to the company. The services and capabilities are undoubtedly valuable, but like legal, accounting, or human resources departments they are a cost to the company. In my humble opinion, in many cases this should change.

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The Storage Costs of Protection

I have presented several blog entries on the topic of data protection costs. In a previous blog I suggest that we cannot afford to protect data at the rate that we are now accustomed to.
In another entry, I attempted to outline how data protection trends have given rise to over-protected or over-insured data.

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SSD Opens the Way for More Tiers of Storage

I came across this graphic from the HDS Competitive Marketing Group, and it depicts very well the SSD/Flash innovation into traditional storage architectures.

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2014 Prediction #3 – Price Erosion Will Not Keep Up with Growth Rates

by David Merrill on Jan 30, 2014

This post is the third in my prediction on the economics of IT series. Be sure to read predictions 1 and 2 if you missed them. My 3rd prediction has to with spending, price erosion and growth. From a macro view, my prediction is that Moore’s law cannot keep up with the rate of growth while holding CAPEX flat.

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We Cannot Afford to Protect, Certify, and Encrypt All of the Data That Current Traditions Expect

by David Merrill on Jan 21, 2014

This is the 2nd installment of my series on 2014 IT economic trends (read the previous posts here and here). This second prediction may not ring true for all IT planners and architects.

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Depreciation of IT Assets Will Diminish

In my last blog of 2013, I set up a premise for IT and storage predictions in 2014, from an economic or financial perspective.

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IT economic Predictions 2014

by David Merrill on Dec 20, 2013

Hu Yoshida has recently completed a blog series on 2014 trends and predictions, and I’d like to add a few of my own from an economic or IT finance perspective. As I look back on the 15 years of developing and observing economic trends in IT, I believe there is a new shift ahead of us on how we justify, grow, finance and pay for IT services. I don’t think that the traditions and financial practices of the past will be as relevant in the future.

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Spy Agencies Rely on Storage Economics

by David Merrill on Nov 19, 2013

A Canadian colleague sent me this article last week, and referenced the fact that low cost (I think they meant to say low price) is the reason spy agencies around the world are able to effectively keep all the data that they do.

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Cost of Very Long Term Data Retention–The Final Installment

by David Merrill on Oct 30, 2013

The past 3 blogs (part 1, part 2 and part 3) presented the basic framework to identify and measure long-term data retention options. In this final entry, I will summarize other cost areas that need to be considered when one compares and contrasts options for 100-year (or more) data retention plans. In my first blog, I stated that I would ignore the media cost, and service delivery option. I will break that rule now, as these last 3 cost areas are highly dependent on the type of delivery service used.

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Understanding the cost of migration & re-mastering in very long-term data retention

by David Merrill on Oct 22, 2013

In my third installment on the economics behind long-term data storage (read the first two here and here), I will discuss the single largest cost component for keeping data for very long period of time, and these are the costs of migration and/or re-mastering. In a 100-year perspective, the cost of migration and re-mastering represent 60-90% of the total PV cost, depending on the method you choose for long-term retention.

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David Merrill - The Storage Economist

David Merrill
Chief Economist

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