Driving Storage Efficiency in a Down Economy - avnet-1. · PDF fileDriving Storage Efficiency in a Down Economy ... CIO, BBM “Now we just add ... RAID-DP Thin Provisioning Thin Cloning

Tag line, tag line

Julie Parrish Vice President, WW Channel Sales NetApp

Driving Storage Efficiency in a Down Economy

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Challenges: What Customers are Saying

  Economic uncertainty

  Maintaining business & IT alignment

–  …with shrinking budgets

  Scalable workforce

–  … will I have to reduce staff?

  Delivering business value

–  … I will invest in things that reduce my 2009 total spend


Storage: Under More Scrutiny

  Storage is 2nd highest IT cost

  Storage costs growing 50% per year

  Budgets are down or flat

Source: IDC Perspectives Study, 2008

IT Spend Breakdown

Peripherals 9%


Nobody told data to stop growing.

© 2008 NetApp. All rights reserved.

IDC’s revised economic “Crisis” forecast calls for patchy clouds and sunshine

5

Storage Management Market Storage management software can help solve portions of this financial crisis by making more effective use of storage assets including better power consumption characteristics and more efficient utilization factors.

“Projects with short-term implementation cycles and with quick paybacks will be undertaken before long-term major projects with longer-term paybacks”

Storage Infrastructure Market The storage infrastructure market will be most impacted by virtualization in the server market. Initiatives on efficiency, and thus green, will positively impact infrastructure software spending and thus the market, but the purchases will be made where clear payback is demonstrated. In addition:

Assumptions Despite the economic downturn, IDC data shows no declines in the purchase of increasing amounts of storage capacity, even as storage hardware prices continue to decline. Faced with this capacity growth, now more than ever, firms need to manage their storage infrastructure more efficiently.

Adoption of storage optimization will continue. Technologies and products that afford storage optimization such as de-duplication will continue to be adopted and drive spending.


Partners concur with this forecast   Q4 was at or above plan, Q1 predictions somewhat “lackluster”   Storage remains an area of strength   Non-discretionary projects with quantifiable short term ROI are getting funding

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-20 -10 0 10 20 30

2009 Expected Relative Areas of Strength and Weakness

Positive Negative

Storage

Server Virtualization

Business Intelligence

VDI

De-Duplication

Security

Networking

PC

Server

Software Applications

RW Baird Q4 2008 Channel Survey

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Transformative Forces Creating Opportunity

  Backup redesign

  Ethernet storage

  Virtualization


Back-Up Redesign

  Why now? –  Backup windows shrinking –  Large-scale restores –  Virtualization –  Archive –  Compliance –  Security

  Why disk-based? –  Superior performance –  Space efficient technologies –  Integrated data management

50% Annual Data Growth


The Inevitability of Ethernet

  Economies of scale: –  R&D investment –  Lower cost –  Pervasive skill set

  Why now? –  Server virtualization –  NFS for VMware –  FCOE

Source: IDC Worldwide Disk Storage Systems 2007– 2011 Forecast Update, Doc#209490, Dec 07

90% 80% 70% 60% 50%

0

100%

30% 20% 10%

40%

‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11

Fibre Channel attached storage

Ethernet attached storage

Fibre Channel vs. Ethernet Share by Revenue


Shift to Server Virtualization

The Implications

  Requires networked storage

  Must think end-to-end

  Imperative for increasing storage efficiency

  New challenges for data protection

Market Growth Virtual Machines & Physical Servers

10 Million

8 Million

6 Million

4 Million

2 Million

0

12 Million

‘06 ‘07 ‘08 ‘09 ‘10 ‘11

Virtual Machines

Physical Servers

Source: IDC Workloads 2007: Understanding System Deployment, Feb 08

Sources: Gartner Survey (11/2006. N=215), IDC, Thom. Weisel, Forrester, and VMware S-1

Adoption

80-90% of Fortune 1000 customers now using server virtualization

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Tangible Results

Increased efficiency:   3103 physical servers to 134   Power savings of 2MW ($2.25M per year)   Space savings of 660 racks   Over 8500 ports saved   25% Storage utilization to 70%   ROI in 8 months

Increased capabilities:   Activation times from 6 weeks to same day   Backup went from 96 hours to <30 minutes   Enabled “capacity on demand” business

model

BT is one of the world's leading providers of communications solutions and services operating in 170 countries.



Companies of all sizes see quantifiable results

“NetApp helps us deliver superior levels of application availability while maintaining a very lean IT shop. We have grown our server and storage infrastructure in the past 3 years by 30% to 40%, without hiring additional administrators. This results in potential savings of up to $300,000.”

- Jeff Trantham IT Director, Blue Ridge Paper

- Tom Saint CIO, BBM

“Now we just add new drives at $1,000 each—and with our consolidated, virtualized storage, we make much better use of our capacity. We’ve increased utilization from about 30% to over 60%.”

“Now we can deliver multiple, space-efficient virtual servers in 20 minutes— that gives us tremendous business agility.”

- Chris Saneda CIO and Senior Vice President, Virginia Credit Union


Driving Storage Efficiency


Compounding Impact of Storage Efficiency

Unchecked Data Growth

Snapshots

ATA

RAID-DP

Thin Provisioning

Thin Cloning

Deduplication

Available Today

Future Pervasive Deduplication

Power Optimization Compression


Storage Efficiency Creates TCO Savings For Key Applications

Application Environments   39% lower TCO for Oracle®

  55% lower TCO for SAP®

  30% lower TCO for Exchange   38% lower TCO for VMware®

–  50% lower capacity, guaranteed   44% lower TCO for file services   35% lower TCO for archive

Source: Oliver Wyman and Forrester TCO studies, 2006-2008


Storage Efficiency Reduces Storage Administration Costs

  10x increase in data with no additional headcount

  3x increase in storage with ½ the headcount

  3x data growth but reduced IT costs and headcount

  1.5 administrators manage 750TB and growing


Customers on Deduplication

“We’ve reduced our storage expansion costs by 20% per year because of deduplication.” - Rob Wagner

DBA, Duke Institute for Genome Sciences and Policy

“Using NetApp deduplication [on our largest CIFS file share], we reduced the data volume by 70%. A little over a month after adding NetApp deduplication technology into our environment, we had reduced redundant data by 47%.”

- James Krochmal Manager of IT, Polysius USA

“If we showed you a graph of our disk usage over time, you’d see the incredible shrinking disk that’s been a result of deploying NetApp storage.”

- Jack Kinsey Assistant Vice President, Network Systems Manager, LandAmerica Financial Group, Inc.

Virginia Credit Union achieves deduplication ratio of 33:1 “Without NetApp’s technology, the process would have taken considerably

more time and more capacity than we could reasonably have made available.” - Rich Barlow

Senior Systems Architect, Virginia Credit Union


Complexity = Opportunity


Many Players, Many Directives

The CIO “This Data Center has to last us 3 more years.”

Director of Business Applications “My team’s focused on new app deployment.”

VP of IT Operations “We need to virtualize 1000 servers this year.”

Director of IT Infrastructure “The old systems are least efficient—target them.”


The time is now

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•  Five year partnership •  NetApp revenue growth 45% CAGR, fastest growing product line •  Significant joint investments in B2B, Vertical and Solution Enablement, and Partner on-boarding


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