Mar 24 2017

How much is your data really costing you?

Data StorageWe’ve all seen the alarming statistics about data growth and how much time and energy enterprises spend to deal with that data. Here are some numbers to add to the pile: IDC determined that 30 percent of a typical organization’s IT budget is spent on data storage. What’s more is that a typical company also spends eight times as much storing copies of data as it does on original data and analytics.

These numbers illustrate a significant problem: the cost of data storage is overtaking IT department budgets and resources at the expense of innovation and the things that data is supposed to help with, like analytics.

You may say, “What’s the big deal? We store our data today and the cost is high, but it’s not crippling.” That may be true, but to really get a feel for the dent data storage puts in your bottom line, it helps to look at a real-world example. Based on customer data, HP recently showcased one case in point.

Take a company that stores 1 petabyte (PTB) of data today. Including acquiring the hardware, power and cooling, it costs $3.1 million in the first year. This is significant, but it won’t break the type of company that has 1 PTB of data. And then all you need to do is pay for maintenance, power, etc. in the years after that, right?

Not exactly. Looking at the real cost through time, the numbers add up in a hurry. Assuming a conservative 30 percent year-over-year growth in data volume, this company will need close to 3 PTB of storage after five years. With the additional equipment and resources to maintain it, you’re looking at a whopping $11.5 million total cost over five years. Not what you expected when you spent $3.1 million to set everything up in year 1.

Of course, this is just for data from the applications you’re currently using. I don’t know many companies that go five years without changing or adding to their application load. In this example, every application that requires 100 TB of data, not that much really, adds about $900,000 additional cost over five years. Put those on top of the $11.5 million and the dollars add up quickly.

Too many companies think that $3.1 million figure is the cost of their data. Those companies are in for a rude awakening when the actual bill is $11.5 million, or more. But what can you do? We leverage HPE solutions to address this very problem. HPE’s solutions, including 3Par StoreServ, offer features like flash-optimized performance, thin deduplication and self-managing features to reduce complexity and cost.

So, what’s the real cost of your data? It’s likely more than you think. Let’s talk.


Chris Ticknor
Director of Marketing
Key Information Systems