Issue dated -28th July 2003

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Front Page > Storage Special > Story Print this Page|  Email this page

Storage Special: Low Cost SANs

Affordable SANs gain ground in SME market

Do Storage Area Networks (SAN) make sense for SMEs? While it is true that SANs have been limited to the enterprise segment in India in the past, dropping prices of fibre channel switches and disks, and easier deployment, have made low-cost SANs an attractive option for SMEs, says Akhtar Pasha

Shailesh Agarwal says that SMEs want low-cost plug-and-play SAN solutions that can be easily integrated with their servers

A storage area network simplifies storage management and improves data flow by removing storage traffic from the local area network. However, with an average implementation cost topping Rs 40 lakh in the past SANs have historically been beyond the reach of SMEs, who have largely relied upon Direct Attached Storage (DAS) and network attached storage (NAS). Ease of management and affordability are two key reasons why SMEs are investing in low-cost SANs today.

Shailesh Agarwal, country manager-storage at IBM India says, "SMEs want low-cost plug-and-play SAN solutions that can be easily integrated with their servers" T Srinivasan, country manager, EMC India adds, "A SAN is within the reach of SMEs and affordable. If a SME has two or more servers with multiple operating systems, low-cost integrated SAN boxes are an ideal solution."

IBM pioneered the concept of low-cost SANs when it launched its SAN Made Simple (SMS) campaign in April 2003, which centred on ‘SANwitch’, a SAN solution that combined Big Blue’s FAStT storage with a fibre channel (FC) switch.

Barriers to SAN adoption

Mike Sparkes, product marketing manager-APAC, Quantum Corporation says, "SMEs didn’t invest in SANs in the past due to the high cost of FC switches and the specialised skills required to configure and design SAN architecture." The good news is that server and storage vendors have started offering packaged ‘SAN-in-a-box’ solutions that bundle FC switches, high capacity data storage and software to manage storage infrastructure through a single console.

Trend and business drivers

The cost of Fibre Channel (FC) HBAs (host bus adapters) and SAN switches drove SAN costs sky high in the past. Lately, prices of FC switches and cost per megabyte have declined and an entry-level SAN is available for around Rs 10 lakh. Low-cost SAN prices range from Rs 10 lakh to Rs 30 lakh.

Inside a low-cost SAN

A low-cost SAN is an integrated package that includes a FC switch, high-performance software and disk storage that can be hooked up to at least two servers. Anil Valluri, director-systems engineering at Sun Microsystems says, "With low-cost SAN boxes, SMEs can start with a lower investment while setting up their SAN infrastructure and pay later as their storage requirements increase."

Low-cost SAN boxes are ideally suited for applications such as messaging, Web hosting, CAD/CAM, GIS and sharing of data across operating systems.

Demand from smaller cities

Demand for low-cost SAN boxes is growing in B and C class cities, in addition to the metros. Companies in manufacturing hubs such as Pune, Coimbatore and Cochin have gone in for storage consolidation and are now beginning to implement low-cost SANs. SMEs in Jaipur, Hyderabad, Vijaywada and Mysore are buying-low cost SANs.

Managed services

SMEs tend to have limited budgets, leading resellers to conclude that the margins involved don’t justify the efforts that they have to take for each sale. Many industry veterans feel that this trend might open the door to offering managed services because IT managers of smaller firms lack expertise in FC technology. Channel partners or system integrators trained by server vendors can manage SME SANs.

SMEs buying high-end SIAS servers can be tapped

Four-way servers account for 20 percent ($25 million) of the Intel server market. Companies with 4-way or higher servers are more likely to go in for low-cost SANs.

Agarwal says, "Over the years, as their requirement for storage and applications increased, SMEs have bought Intel-based servers with DAS. Managing DAS is expensive and time consuming." IBM grabbed the market opportunity to sell low-cost SANs when it found that its resellers were selling multiple Intel servers to the same customers. "Once an SME consolidates storage, the next level is to go in for data protection and business continuity. Low-cost SANs will help protect their investment and are highly scalable," adds Agarwal.

Anil Valluri says that with low-cost SAN boxes, SMEs can start with a lower investment while setting up their SAN infrastructure and pay later as their storage requirements increase

Everybody’s got a low-cost SAN to sell

IBM’s low-cost SAN boxes are the FAStT200 and FAStT400. Its customers for these products include Pidilite Industries, Essar Lottery Division, Sanmar Engineering, ILPS and Kolkata Port Trust. Agarwal says, "On an average, we are expecting to acquire 20 to 25 new customers per quarter and our conversion ratio in the last three months has been one in every four enquiries."

Hitachi Data Systems (HDS) has joined the bandwagon along with Sun Microsystems, HP and EMC. HDS has started focusing on the SME market recently with its Hitachi Freedom Storage Thunder 9531V and Thunder 9532V storage systems. V Vivekanand, business development manager, HDS says, "We are in the process of setting up our channel in India. Within the SME market, our target market will be the extended supply chain in manufacturing, life sciences, small pharmaceuticals, IT services and call centres." HDS expects $7.25 million in revenues to come from the SME segment by the end of fiscal 2003-04.

Sun has 35 installations in the SME segment to its credit, all acquired in the last six months, for its StorEdge 3000 workgroup—a low-cost SAN box. The company’s client list includes India Today, Gati Cargo Management Services, Hathway, Siticable, MTR Foods, Madura Garments and West Coast Paper Mills. Wipro, HCL, Tata Infotech, Tech Pacific, Ingram Micro and CMC are some of Sun’s channel partners who are selling the StorEdge 3000.

HP is offering the entry-level MSA1000 as its low-cost SAN solution, priced upwards of Rs 10 lakh. HP’s strategy will be to target auto ancillaries, manufacturing companies, small insurance firms and telcos. EMC is addressing SMEs with its Clariion CX200 priced at $20,000.

New verticals within the SME segment

New verticals within SMEs, such as small insurance companies and small public sector banks, hold considerable business potential for low-cost SAN boxes as these companies are just finishing their IT roll-outs.

FC or IP SAN?

Low-cost SANs are likely to become more affordable over the next 12 to 18 months as standards for storage-over-IP are ironed out. Unlike current SANs that run on expensive fibre channel networks, IP storage transports data over a company’s WAN, that can be used for remote mirroring of data to a secondary disaster recovery site. Though IP SANs have numerous benefits vis-à-vis FC SAN, SMEs are not bothered about the concept as products are not available and low-cost FC SANs solve their basic business problems.

Case Study: India Life Hewitt implements IBM FAStT200 SAN

India Life Hewitt (ILH) is an HR BPO outfit. One of its core focus areas is the processing and administration of payroll and pension for its clients who number 270, with over 300,000 employee records. The company had been using several Intel-based servers with DAS. Biju J R, IT manager-infrastructure at ILH says, “One of the Intel-based servers ran Oracle on NT. When we developed a new J2EE-complaint payroll application on Solaris, the database was not shareable. Additionally, server upgrades entailed using additional resources, downtime and data being unavailable to our customers. Backup was cumbersome.”

In early 2001, the company decided to consolidate its pension and payroll database using the IBM FAStT200 SAN solution. Biju says, “We found IBM’s solution to be competitively priced. Additionally, IBM’s reseller partner, Frontier Business Systems, offered better customer support.” The FAStT200 offers 140 GB of storage, a dual controller, fully redundant, FC with 10-12 hard disk capacity for future expansion. ILH currently uses six of these hard drive slots, leaving 50 percent headroom for scaling up at a later date. Biju says, “With consolidation, managing the pension and payroll database from multiple operating systems has become easy. It gives us the option to plan our disaster recovery site. Additionally, backup can be taken from one single point. We have been using FAStT200 for two years and find it fully redundant.”

In the second phase, the company is planning to consolidate its three remaining databases and it plans to invest in the higher capacity FAStT500 SAN box.

Investment in FAStT200 was driven by technology benefits:

  • A SAN box can be partitioned and configured to allow access from multiple server operating systems.
  • Investment protection and zero downtime: since storage is separated from servers, investment is protected from the cycle of regular server upgrades.
  • Single point of management for databases, backup and recovery.
  • Consolidation using FAStT200 will help ILH plan and execute its disaster recovery site.

Low-cost SAN product guide

Vendor Product Specifications of a low-cost SAN Customers/target market
IBM FAStT200 FAStT200 storage server, 365 GB FC disks, 2 Intel-based HBAs and a built-in SAN hub plus an IBM smooth start service package. Primark, ILH, Sanmar Engineering, Kolkata Port Trust and Pidilite Industries
Sun StorEdge 3510 Supports up to 8 FC ports, can be scaled up from 300 GB to 4 TB. Product is bundled with software for allocating storage. Gati Cargo, Hathway, Siticable, MTR Foods, Madura Garments and West Coast Paper Mills
EMC Clariion CX200 Offers three 2 GB drives, can scale from 0.5 to 1.5 TB of data. Manufacturing, logistics software development firms
Hitachi Data Systems Thunder 9531V Single controller with two FC Port scales from 360 GB capacity to 1 TB Plans to target companies in life sciences, IT services, call centres and manufacturing
HP MSA1000 It can scale from a single port FC to 6 ports (optional) and comes with a single controller. Extended manufacturing, telcos, small insurance and public sector bank
Source: Vendor websites
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