Getting the Most Out of Your Storage Network

1. Getting the Most Out of Your Storage Network Nick Allen VP and Research Director Gartner Inc. Storage Decisions Chicago, September 10th 2003

2. Agenda • How do you provide capacity on demand without overbuying storage? • Is there an effective way to combine the strengths and cost advantages of Fibre Channel, SCSI and ATA disks in an integrated infrastructure? • What are the pros and cons of mixing Fibre Channel and IP networks for storage? • How do you leverage new technology without adding to management overhead?

3. Agenda • How do you provide capacity on demand without overbuying storage? • Is there an effective way to combine the strengths and cost advantages of Fibre Channel, SCSI and ATA disks in an integrated infrastructure? • What are the pros and cons of mixing Fibre Channel and IP networks for storage? • How do you leverage new technology without adding to management overhead?

4. Competition The Fundamentals of Negotiating • Never purchase under time pressure • Use a dual-supplier policy wherever feasible • Don’t allow a vendor to bypass the technical staff • Align the deal time with the vendor’s timings and sales incentive programs • Don’t show enthusiasm • Always obtain line-item pricing • Lean toward purchase rather than standard lease if upgrades or extension are planned • Destroy the self-confidence of the sales representative

5. Everything Is Negotiable 100% • Hardware • Initialacquisition • Upgrades • Software • OTC discounts • Blended bids • ProfessionalServices • SAN Design • Data Migration • Conversions • Maintenance • Warranty • Discounts 80% Nonhardware % 60% 40% Hardware % 20% 0% ’01 ’02 ’03 ’04 ’05 ’06

6. Mainframe Unix NT FC Outboard Backup Switches, Hubs Emerging Costs • SAN Fabric • HBAs and path managment • Network • DR and BC • SAN management software • Access protection software • “Lock-in” effect • Virtualization & file systems • SRM Software • ILM Software

7. Cost $/GB 50 40 30 20 10 0 1 4 7 10 13 16 19 22 25 28 31 34 36 Disk Subsystem Pricing Month

8. End of Primary Useful Life End of Technological Life End of free Maintenance Primary Life Residual Value 20% Salvage Value 10 SW HW Time (in Months) 12 24 36 48 Residual Value vs. Technological Life • The annual price erosion will continue with at least 30-50 percent • The cost are shifting into storage features and storage management. • Current product cycles are 18 to 24 months • Maintenance becomes prohibitively expensive after two cycles • Products more than two cycles old are economically obsolete • Upgrades are uneconomical after one cycle if the warranty is not extended

9. SAN, NAS or High-End Enterprise Larger investment in procurement, but Better use of “spare capacity,” flexible LUN sizes with dynamic reconfiguration Improved availability, performance, security and disaster recovery Ability to consolidate and automate backups, tape libraries Multi-platform data transfer and new file systems More efficient access, sharing and distribution of information throughout the enterprise Lower storage management costs Consolidated Disk Storage

10. When to Acquire? Big Steps or Small? 70 What to consider • Price erosion • Vendor upgrade granularity • Software band’s granularity • Operation disruptions • Faster utilization of spare capacity • RFP overhead • Contract administration overhead 60 50 40 30 20 TB 10 0 1 2 3 4 Years

11. How scalable is scalable? Strategies • 36-month service life and warranty • Line-item, forward-priced upgrades; not-to-exceed • Buy within first 12-18 months • Rigorous TCO analysis Issues • Limited warranties • High maintenance costs • Deflationary H/W market • Growing software costs

12. New Financing Models • Standard lease • Subsystem storage costs are spread equally over the lifecycle of the lease (flat rate). • Match situation when storage requirements are not growing or grows by new lease or purchase of additional subsystems • Pay per forecast • This model is designed for users with constant, continuous and predictable growth rates. • Instead of paying flat leasing rates up front, the monthly lease payments are made according to the usesage forecast

13. New Financing Models (cont’d) • Capacity on demand or pay per use — This “utility” model is best suited for users with unpredictable storage demands. • Emerging metering metering applications extract usage data at regular intervals from the customer’s storage devices. Usage data is averaged and the customer receives a monthly bill based on average usage. • Capacity-on-demand considerations • Speed of activation • Dynamic activation? • Coverage of temporary peak demands. • Challenges to overcome • Variable cost vs. static budget • Tracking peaks • Measurement rationale

14. Storage Management Costs • Up to 1– 4 ratio between cost of capacity and cost of storage management (most of costs are labor costs) • Required manpower to manage • Distributed storage: 500GB/manager • Central location but not consolidated: 600GB/mgr. to 800GB/mgr. • Multiplatform consolidated storage: 2,000GB/mgr. to 4,000GB/mgr. • Future • Increase in personal costs • Data capacity explosion

15. Agenda • How do you provide capacity on demand without overbuying storage? • Is there an effective way to combine the strengths and cost advantages of Fibre Channel, SCSI and ATA disks in an integrated infrastructure? • What are the pros and cons of mixing Fibre Channel and IP networks for storage? • How do you leverage new technology without adding to management overhead?

16. 40,000 Total Fibre Channel 35,000 30,000 25,000 Total SCSI 20,000 15,000 Multiuser ATA 10,000 5,000 0 2001 2002 2003 2004 2005 2006 2007 ATA Penetration for Multi-User Applications K Units

17. ATA vs. SCSI Disk Performance ATA SCSI SCSI/ATA ATA/SCSI 7,200 15,000 208% 48% Test/Spec RPM 8 8 100% 100% Cache on Drive (MB) 45.5 64.7 142% 70% HDTach Sequential Read (Average MB/sec.) 27.7 42.6 154% 65% HDTach Sequential Write (Average MB/sec.) 13 5.7 44% 228% HDTach Random Access Time (ms) 150 360 240% 42% IOMeter Desktop I/Os per Second 424 177 42% 240% IOMeter Desktop Average Response Time (ms) 143 408 285% 35% IOMeter Web Server I/Os per Second Web Server Average Response Time (sec.) 6.18 2.508 41% 246% IOMeter 600 1,200 200% 50% MTBF (Thousands of Hours) 8 24 300% 33% Duty Cycle (Hours per Day)

18. Fast Short High Low High Synchronous Mirroring Asynchronous Mirroring or Replication Primary SCSIDisk Restore Time Cost per GB Data Density Snapshot Data Protection Retention Reliability ATA Disk Backup Tape Archiving Slow Long Low High High ATA Disk as a Cache Buffer

19. Low-Cost Disk NetApp NearStore FAS EMC CLARiiON Disk StorageTek BladeStore Disk Snap Appliance SnapServer NAS BlueArc MTS NAS Emulates Tape Library Complete Solution Nexsan InfiniSAN DTD Quantum DX30 System Upgrade Aurora VTC Ultera VTC Dynamic Network Factory VTS Ultera VTC Asaca Firefly Interkom EVTS Controller Only Ultera Mirage VTC Bus-Tech MAS ESCON Only Tape Labs VTS Software Only Alacritus Securitus Diligent VTF MF Mainframe Only EMC CopyCross Mainframe Only Disk to Disk to Tape Software Only IBM TSM Veritas Netbackup CA Brightstore Legato Networker Virtual Tape Complete Solution IBM VTS Neartek VTLM StorageTek VSM Mainframe Only Fujitsu Siemens CentricStor Software Only CA Vtape Mainframe Only Backup Appliance Avamar Axion Network Based DataDomain Restorer Compression Function DTD & DTDT Category Company Product Comments

20. Agenda • How do you provide capacity on demand without overbuying storage? • Is there an effective way to combine the strengths and cost advantages of Fibre Channel, SCSI and ATA disks in an integrated infrastructure? • What are the pros and cons of mixing Fibre Channel and IP networks for storage? • How do you leverage new technology without adding to management overhead?

21. Storage Network Infrastructure • The Fibre Channel SAN component market continues to consolidate dramatically; will new switch vendors finally reverse the trend? • iSCSI tentatively explores a complementary market and waits for the “10 Gbps” performance kick • Native InfiniBand storage is generally off the map for storage networking • Vendors of competing technologies (falsely) blame economic factors for slow market progress • The 10-Gbps convergence will likely be a no-show

22. Why 4-Gbps FC Infrastructure? Ask the server providers, not the storage system OEM customers • Increasing SAN awareness on part of servers • Switching support of 4-Gbps connections for servers • 10-Gbps connections for storage systems • Existing standards-based backward compatibility • Favorable incremental costs of connecting a server to a SAN • Technology upgrade without price premium • Implementation in low-cost copper • Better match to available buses in 2004

23. IP versus Fibre Channel Scenarios • The market for iSCSI and IP block storage will evolve as a complement to FC in the market where lower cost and enhanced connectivity is paramount (0.7 probability) • Competition for next-generation SAN infrastructure will play out on a level playing field with a common 10-Gbps physical layer for both Ethernet and Fibre Channel (0.3 probability)

24. Brocade McDATA Cisco CNT/INRANGE QLogic SAN FC Switch Magic Quadrant Leaders Challengers • Emerging Players • Sanera • Sandial • Maranti • Maxxan • Others? Ability to Execute As of April 2003 Niche Players Visionaries Completeness of Vision

25. Hosted by Would you be willing to change your Fibre Channel Switch vendor? • Yes • No • Maybe • Unknown • Already did it • Already a mixed shop Cross-Tab Label 0 / 500

26. iSCSI Progress Probability of occurring by year-end: Event 2000 2001 2002 200320042005 Meaningful, approved and open industry standardsfor iSCSI.6.8.91.01.01.0 Proven, affordable TOE cards.5.7.8.91.01.0available with IPSec Widespread availability of low-cost.5.7.91.01.0Gigabit Ethernet Widespread driver support for iSCSI.5.7.91.0Widespread availability of storage.5.7.91.0subsystems supporting iSCSI Widespread availability of fully tested,.5.8.9interoperable, certifiable homogeneous iSCSInetworks and storage systems Same as above – heterogeneous environments .5.7.8 Larger Ethernet packets (nice to have).6

27. Number of SAN-Attached Servers

28. Fibre Channel Link and SAN Extension SAN Extenders Fibre Channel SAN Island ATM/IP/DWDM/SONET Fibre Channel SAN Island SAN Extenders

29. iSCSI Gateways Between IP and FC Hosts With iSCSI Cards Storage Systems Fibre Channel Ethernet Gateway/Router

30. Agenda • How do you provide capacity on demand without overbuying storage? • Is there an effective way to combine the strengths and cost advantages of Fibre Channel, SCSI and ATA disks in an integrated infrastructure? • What are the pros and cons of mixing Fibre Channel and IP networks for storage? • How do you leverage new technology without adding to management overhead?

31. Visibility SRM Block Virtualization Distributed HSM SATA Virtual Tape Tape Cartridge Automation Blu-ray Disc Provisioning SAN Management AOD Backup TOEs Replication Metro Area SANs File Virtualization Mainframe Virtual Tape Content Addressable Storage Wide-Area SANs SANs Based on Fibre Channel ASAM iSCSI Clustered File Systems Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity Technology Trigger Holography Polymer Storage MRAM As of May 2003 Maturity Storage Hype Cycle

32. Real Time Storage Infrastructure 1980s 1990s 2000-2005 2006-2010 Direct-AttachedStorage (DAS) The AutomatedStorage Utility InternalServer Storage Networked Storage • Storage is a peripheral to the server • Much manual administration • Poor asset utilization • External high availability, fault-tolerant storage • Some sharing, but mostly DAS • Much manual administration • Poor asset utilization • More productive storage administration • Storage networks, pools, virtualization, event consoles, some automated provisioning • Separately managed processes, services, devices and media • Autonomic active management • Policy-based management • Full-scope automated provisioning • Effective root-cause analysis • Self-healing storage services • Service views via auto discovery • Storage asset optimization

33. SAN Management Magic Quadrant Challengers Leaders . EMC . . Veritas . Ability toExecute . . HP . McData . Creekpath . . InterSAN IBM . Storability Fujitsu CA SUN As of April 2003 Niche Players Visionaries Completeness of Vision

34. Challengers Leaders Ability to Execute . . EMC . . . CreekPath Hewlett-Packard Veritas Systems InterSAN As of April 2003 Niche Players Visionaries Completeness of Vision Initial Storage Provisioning Magic Quadrant

35. Challengers Leaders . . EMC . . . Precise Veritas Ability to Execute . EMC/Astrum IBM . HP . CA . Storability . . . TeraCloud . . Fujitsu Softek Tek-Tools CreekPath Northern Parklife Sun As of May 2003 Niche Players Visionaries Completeness of Vision SRM Magic Quadrant Key: CA Computer Associates International HP Hewlett-Packard Precise Precise Software Sun Sun Microsystems Veritas Veritas Software

36. Storage Management Wars StorageManagement Revenue Veritas EMC $1billion IBM HP “Cloud cover” turbulence zone $500million CA Sun Princeton Softech Legato Tek-Tools $200 million Northern Parklife Arkivio DeepFile Fujitsu Softek CommVault OuterBay AppIQ McDATA Bakbone FilesX Astrum Storability $10 million InterSAN CreekPath Teracloud

37. Recommendations • Buy storage, not visions • Negotiate everything and get creative • Deploy ATA-based systems carefully • Plan for Fibre Channel to remain the dominant high-performance technology for SANs from 2 to 10 Gbps • Choose FC link extenders and SAN extenderswith careful consideration of requirements • Plan for IP storage technology to provide lower-costand extended-connectivity solutions • Continue to view all SAN management and ASAM purchases as tactical