Cloud pricing model offers advantages over conventional storage

In this expert video from his 2012 Chicago Storage Seminar presentation "How to build a storage cloud, what applications are most 'cloud worthy' and who does what?," Dragon Slayer Consulting president and founder Marc Staimer hails the cloud pricing model that changes the traditional method of buying storage from an up-front model to a pay-as-you-go model.

"It's a direct relationship between what you store and what you pay for. That's a totally different paradigm than what [we're] used to," Staimer said.

Data storage managers will have to rethink their typical purchase plans when working with private or public cloud offerings, he said. Typically, storage decision makers see the largest discounts from their first big purchase from a vendor.

"The more you stuff into that first deal [is how] you get your best discount," Staimer said. "I've seen discounts as high as 80% -- up front."

A good rule of thumb when considering total cost of ownership (TCO) for storage, he explained, is to take the raw cost of your first storage investment and multiply that number by six. "That will probably be your total cost of ownership over three years," he said.

But with cloud storage-based pricing models, data storage managers will pay only for what they've consumed … sort of like an electrical bill, Staimer said. "You control your costs. At the end of the day, you're going to end up with a much lower TCO."

What about the costs associated with private clouds? You do have to buy the hardware, but you're buying the underlying hardware in bigger chunks, he said, referring to the x86 servers. "Instead of pay by the drink, it's pay by the case. But you're still using a pay-as-you-go model."

Off-the-shelf commodity components needed for cloud storage include:

  • x86 servers
  • Hard disk drives (HDDs): SATA, near-line SAS and SAS
  • Solid-state drives (SSDs): Single-level cell, multi-level cell and enterprise multi-level cell
  • Ethernet: 1 Gbps/10 Gbps/40 Gbps

For a complete explanation of Staimer's take on the way a cloud pricing model can change a storage manager's budgeting and purchasing decisions, view his video and chart comparing traditional and cloud storage pricing.

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