Storage Strategy Development Part 2 · 3 2015 Data Storage Innovation Conference. © Evaluator Group All Rights Reserved. Process

Storage Strategy Development Part 2

Randy Kerns Evaluator Group

2 2015 Data Storage Innovation Conference. © Evaluator Group All Rights Reserved.

Topics

Review Selling the strategy Budgeting Economic measures Executing


Process

Strategy Overview

3

Information Strategy

IT Strategy Planning Team

Business Strategy

Current Operations Best

Practices

Requirements

Tactical Plan Implementation Plan


Review Process

Internal team review after strategy elements in place

Refine Get concurrence

Review with constituents that participated Explain reasoning and outcome Take feedback and respond

Changes or agreement regarding best path forward

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Selling the Strategy

Sell to executives in IT chain Economic justification

Overall based on TCO Rolled-up value across projects Materials – collateral

End point values – what is ultimately achieved

Increase / remain competitive Add value to organization

Process to deliver



Sell to groups served Value delivered

Interest in when – need timeline, detailed schedule Show how this fits with overall corporate / business strategy

Checkpoints – part of communication plan

Regular updates – personal Visible tracking



Economic overview Projects where funding is included ROI driven projects - <12 month view Funding alternatives where projects not covered

Develop possibilities Leasing / deferrals / pay as grow Be creative


ROI – Return On Investment Calculated on a per project basis Assessment of return on investment money for savings or gains from project implementation Will include

Cost of solution (hardware and software plus implementation costs) Savings in administration / operations Gains in increased business, productivity, customer service etc.

Usually expressed as a % of gain with a payback period of time

Budgeting


ROI – Return On Investment calculation Identify infrastructure components and their characteristics

Costs Operational issues Growth rates (infrastructure and staffing)

Hard Benefits Capital savings or deferred capital investment Operational savings Improvements in staff productivity

Soft Benefits Opportunity costs such as maximizing revenue potential by making enterprise information and applications more available Cost avoidance through minimizing downtime

Budgeting


Measurement - TCO

Total Cost of Ownership is used measurements Comparisons between different alternatives Measurement to effect of changes implemented as part of strategy Long term economic impact for storing and managing information


Typically annual costs of system / solutions Elements of TCO include:

Product costs – software and hardware Capital expenditures Implementation costs Training costs

Administration (operational) costs Operations support – monitoring and tuning Maintenance costs / support licenses Environmental costs (including power, space, etc.) Migration costs

TCO – Total Cost of Ownership


Creating Economic Model

TCO Modeling Using tools to show economic effects Look at long term – 10 to 15 years Allow what-if’s: need to be able to effect with changes such as increased capacity demands and costs – different scenarios Models can be constructed for long-term measures or decision comparisons



Example Showing long term effect of data retention and use of two tier archiving


Economic Model Example



Example Comparison of economics of strategy to move to scale-out architectures


Economic Model Example


TCO Planning

Start with some basics Very complicated models are available from some vendors Use a spreadsheet to start accumulating information needed for creating a TCO model Warning about soft costs/benefits


TCO Elements – Hard Costs

Year 1 Year 2 Year 3 Year 4 Year 5 Total Hardware capital expense

Hardware maintenance

Software capital expense

Software maintenance

Administrative costs: • software features • hardware system

Power/cooling/floor space

Backup infrastructure costs

Backup/Restore admin costs

BC/DR costs

Networking costs

Migration costs

Installation & training costs SUM


TCO Elements – Soft Costs

Year 1 Year 2 Year 3 Year 4 Year 5 Total Provisioning Time Cost

Capacity utilization

Duplicate copies

Availability costs • Scheduled outages • Failures

SUM


Executing on the Strategy

Create a checklist for the process Diagram the process for everyone to see Organize the team

Sell the concept Get others to volunteer to take on research Meet weekly to review

Make upper management aware of progress Let everyone know about visibility


Developing a Strategy Summary

Required to pro-actively manage information and technology

Develop the strategy Understand environment Understand technologies Understand best practices

Sell Clear plan Practices of how it will be executed Budget Reviews / measurements

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Contact Info: Randy Kerns [email protected] @rgkerns PH:303-748-0276

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Storage Strategy Development Part 2 · 3 2015 Data Storage Innovation Conference. © Evaluator Group All Rights Reserved. Process