Increasing NAND flash costs affect disk array sales

Increasing NAND flash storage costs

Posted on Wednesday, October 4, 2017

According to new research published by Morgan Stanley, the external storage market has slowed over the last quarter, growing just 0.2% year-on-year. But the cause is not, as might be expected, cloud adoption.

Digging deeper into their own results, the Morgan Stanley analysts found that businesses are continuing their migration to flash storage. Escalating NAND costs are making flash storage more expensive, forcing cost-conscious organisations to delay their upgrade programs.

Older hardware will be staying in place longer

The clear implication of this trend is that businesses will be leaving existing hardware in place for longer. But as storage arrays approach end of warranty, OEMs typically apply pressure to customers by increasing maintenance contract costs to make upgrading to new hardware more attractive. The same is also true when businesses want to move from one vendor to another – interim support is usually extremely expensive to make the switch as unattractive as possible.

This leaves businesses in a hard place. Upgrading to flash arrays now may be more expensive than intended – as will retaining existing hardware. CTOs may find themselves being pushed into purchases that do not fully align with their overall data center strategy.

The third party support option

There is an alternative however, in the form of third party support and maintenance. Partnering with CDS provides your business with interim support, buying you extra time to make an informed decision.

Your business can wait for NAND prices to fall, or to move to another vendor, without paying over the top for maintenance and support from the OEM. And unlike OEM support agreements, CDS allows you to choose a contract length that suits your budget and coverage needs – from a few months, to a year. You won’t be charged a premium either – CDS support contracts offer typical savings of between 30% and 50% over an equivalent agreement with a vendor.

Delaying upgrades while waiting for NAND flash prices to fall does not mean leaving your systems unprotected. To learn more, please get in touch.