Why off-lease NetApp hardware makes more sense than Cloud Storage

Off lease hardware versus cloud

Posted on Friday, November 13, 2015

The need for increased corporate data storage leaves the CIO with a choice – take advantage of “cheap” cloud services to provide unlimited additional capacity, or expand onsite capabilities with new hardware from NetApp (or similar). If the decision is being made on cost alone, the sensible answer would be to choose cloud – but could that actually be a mistake?

The race to zero is on the road to hell

In order to drive uptake, cloud providers have been pushing service prices as low as possible in what analysts refer to as “the race to zero”. The idea is that storage is essentially free at the point of entry. Most providers are already at the point of charging just a few cents per gigabyte of hosted storage.

This strategy presents two problems. First the race to zero will lead to a definite consolidation of the market, reducing choice and leaving those organizations that choose the wrong provider in a limbo as they scramble to recover their data. 

Second, the low cost of entry needs to be recouped, leading to higher costs elsewhere in the service contract. Additional revenue must be raised through the sale of add-on services, processing cycles consumed, and data I/O activity – effectively every resource except the storage. After a year or two, the CTO will be asking themselves whether the cost of “free” is actually effective.

Coming closer to zero NetApp off-lease hardware

Choosing onsite hardware from NetApp involves an unavoidable upfront capital investment, and on-going running costs. These costs can be reduced however by choosing to augment existing systems with extending the lease of your NetApp units where possible, backed by a third party support and maintenance contract. 

Taking the onsite approach may be unfashionable, but it also allows the business to be master of its own destiny, with maximum flexibility over their data, and without fear of their storage provider going out of business.

Properly supported off lease NetApp hardware also helps with budget management, as all processing and movement costs are contained by the business. Again, complete control of the corporate IT system ensures no unexpected bills for use of processor cycles or data transfer. 

Cloud technologies have indisputable benefits – but when they are owned and controlled by a third party, they are also significantly reduced.

To learn more about off lease NetApp hardware and support services, give the CDS team a call now on +1 866 237 8008.