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Storage Economics

Big Data Economics, Putting New Wine in Old Bottles

In the past 2 months, I have been involved with several big data conferences and speaking opportunities with customers and analysts from all over the world. I see some clear and actionable economic conditions around big data projects that are [...]

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An Economic View for Big Data Planning

Two weeks ago I spoke at a CIO forum in Australia, sharing the stage with IDC on the topic of trends and directions with big data. Last week, same topic but in Thailand. Next week, same topic but in London. [...]

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Speaking on Top of the World

  I am working in ASEAN for a few weeks, and have been on a speaking circuit with our partners AC3 and Frontline. Just to prove that work can be enjoyable, I have attached a couple of pictures from a [...]

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Residual Value of Storage Systems

Most of us have bought a car before and sometimes we have an older vehicle to trade in. I have always been disappointed in the trade-in value of my older car, but realize that cars depreciate rather quickly. If the [...]

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Threat Probabilities

A few months ago I wrote a 4-part blog series on the cost of data protection. One of those entries discussed an approach to calculate the annual loss expectancy (ALE) related to risk, and the cost of risks. I had [...]

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Price Does Not Equal Cost

I came across this article on the total cost of storage (and VM) this past week. The author states “Capital costs are actually more of a distraction than a real representation of what storage costs.” And I agree with this [...]

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Defining Costs for Storage Tiers

Over the last few years, it has become increasingly important to create storage service catalogs in order to align business requirements to technical storage architectures. Many organizations shy away from developing catalogs for a variety of reasons, one of them [...]

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Recipe for Storage Chargeback

I have been asked to develop a paper (more like a book) on the topic of chargeback. Since chargeback involves money, colleagues automatically assume that this is a job for the “Chief Economist” at HDS. I have had a lot [...]

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7th anniversary

Today marks my 7 year anniversary of blogging for HDS, with most of the emphasis on the economics of storage, hypervisors, converged infrastructures and cloud. My very first entry on April 4, 2006, summarizes the genesis of my material, research [...]

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Options to Reduce the Total Cost of Data Protection

This is the fourth and final entry on this series about data protection(DP) costs. I have discussed some of the reasons why these DP costs are high, how to measure them, and how to correlate these costs to risk. Finally, [...]

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A Short Primer on Annualized Loss Expectancy (ALE)

My last 2 blogs “Are We Over-protected/Over-insured” and “Calculating the Total Cost of you Data Protection” have been on the cost of data protection, and the categories that make up data protection costs. In a blog format, I do not [...]

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Calculating the Total Cost of your Data Protection

In my last blog post, I introduced a 4-part blog series on the economics or costs of data protection. My colleagues Ros and Claus also are writing a parallel set of blogs on the technology behind data protection. My boss [...]

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Are We Over-protected/Over-insured?

Recently I experienced an insurance audit – to correlate and review all my insurance between home, life, car etc. The audit was helpful in identifying some gaps in my coverage, and to look at ways to reduce my total insurance [...]

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Economic Advantages of Pay-as-You-Grow or Utility Storage Services

I am working in Australia for several weeks, and find that many sourcing companies (including HDS) have been in the Storage as a Service business for several years. Most companies are aware of these offerings and general acceptance seems to [...]

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ROI is still relevant (and not dead)

After my blog entry last week discussing TCO and ROI, a colleague sent me this good article on how ROI and the economic buyer within IT is alive and well. I agree with the concept of “The Rise of the [...]

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ROI vs. TCO

A colleague sent me this article about using ROI to justify IT investment requirements to business managers/leaders. Some follow on discussions have opened up an old debate about TCO versus ROI to justify IT spending in the face of potential [...]

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Project-based Funding Tends to Produce Poor Asset Utilization

In my last entry, the concept of project-based funding for IT resources was started. I want to take a deeper dive into some of the problems of project-based IT funding, and how these methods may have to change in the [...]

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Considerations for Project-Based IT Funding

There are probably a dozen ways IT departments get funding (primarily CAPEX) to handle new growth and daily operations. I am going to present a few of these traditional funding models, and some of the risks that these funding types [...]

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Constructive View of IT Finances

So, did we go over a cliff this week? I was sort of expecting a more grandiose situation, like the scene when Denethor runs (while on fire) over the edge of the promenade of Gondor (in Return of the King). [...]

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Back to 1999 CAPEX Ratio

I like looking at trends. Let’s take a look at one storage economics trend—the ratio of CAPEX to OPEX in the total cost of storage ownership. In 1999, we saw a pattern that the purchase cost was about 50% of [...]

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