Reasons for Financial Institutions to Stop Buying Storage
In today’s economic climate many things may be uncertain; however, one thing you can be certain of, is that financial institutions will continue to generate data. To indicate how much more, recent research studies predict IT organizations can expect to manage 40-60 percent more storage in the coming year. The challenge is they are managing this growing information with tighter budgets.
During periods of robust economic growth, organizations may be tempted to take the “quick fix” to storage management problems. The incremental cost of adding storage is relatively small, and can be absorbed by the budget. Unfortunately during periods of tight budgets, funds are not available for incremental capacity purchases.
The good news is that many institutions have 50 percent or more storage capacity available that may accommodate the organization’s needs for the foreseeable future. On the flip side, only utilizing 50 percent of storage is like paying twice as much for the storage needed.
Idle capacity also consumes power, increases cooling costs, unnecessarily consumes floor space (which is often at a premium), and drains maintenance dollars with no return on the investment. Moreover, storage software licenses are typically based on total capacity, not utilized capacity, thereby needlessly driving up the cost of software.
This scenario is simply not feasible during difficult economic times.
- How is today’s economic climate changing the way IT is thinking about the data center?
- For high impact ways to cut costs, how will improving storage utilization stack up against other IT projects? What kind of ROI can be expected and what is the typical payback period?
- What are some of the best practices in getting better use of your existing storage, predicting when and how much more you need to defer capital spending, and attain better pricing when you need to purchase more?