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@DevOpsSummit Authors: Liz McMillan, Pat Romanski, Elizabeth White, Derek Weeks, Yeshim Deniz

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@CloudExpo: Blog Post

Data Reduction Improves the Cloud Business Case | @CloudExpo #Cloud #BigData #Analytics

Data reduction delivers compelling cost reduction that substantially improves the business case in every cloud deployment model.

Data reduction delivers compelling cost reduction that substantially improves the business case in every cloud deployment model. No matter which cloud approach you choose, the cost savings benefits from data reduction should not be ignored and must be a component of your cloud strategy.

IT professionals are finding that the future of IT infrastructure lies in the cloud. Data reduction technologies enable clouds - public, private, and hybrid - to deliver business agility and elasticity at the lowest possible cost, making cloud the deployment model of choice for IT infrastructure going forward.

You probably have already made a commitment to the cloud because it enables you to flexibly deliver IT resources more quickly and at a lower cost. IT buyers are steadily shifting towards cloud-first strategies where they can rapidly adapt to market dynamics as they are no longer bound by legacy IT constraints. Public, private, or hybrid clouds are choices every C-level executive is making today. Each are different - for example, public cloud is shared with other businesses to yield economies of scale in Amazon Web Services (AWS), Google, Microsoft, while private cloud is either on-premises or hosted by a public cloud provider. Hybrid is a mix of both approaches, with different workloads deployed in each based on need. IDC reports that clouds are rapidly evolving to become more trusted, more intelligent, and more specialized for particular industries and workloads.

The cloud's raison d'être, regardless of the deployment model used, is its ability to deliver IT business agility, deployment flexibility, and elasticity. Cloud priorities today include moving more workloads to the cloud, optimizing existing cloud utilization, leveraging innovation, and enabling multi-cloud deployments.

As businesses deploy cloud infrastructures, they embrace efficiency techniques that have been developed and used by Amazon, Google, and Microsoft to control their public cloud data center costs. These companies deploy efficiency models that increase data density and reduce footprint requirements, while dropping operating costs for power and cooling. As these extremely efficient models are deployed, legacy purpose-built hardware is being replaced with software-defined data centers running on industry-standard servers

Software-defined data centers usher in new opportunities to maximize efficiency in software. One such feature, which is particularly effective and critical in cloud environments, is inline data reduction. In addition to the platforms and software efficiency of cloud, data reduction delivers a substantial impact on your business by reducing the amount of data stored. Data reduction chops the amount of storage consumed, increases data density further, and lowers the costs of data at rest and in flight over your networks. No matter which cloud deployment you use, data reduction delivers economic benefits that make the cloud business case more compelling.

If you are deploying in a public cloud
Every day new workloads are being deployed in public clouds. Worldwide public IT cloud service revenue in 2018 is predicted to be $127B. The economics that public cloud delivers are undeniable. Amazon, Google, and Microsoft growth in the public cloud is testament.

As you deploy a public cloud environment, consider that data reduction technology shrinks public cloud costs. For example, data reduction technology (deduplication and compression) typically cut capacity requirements of block storage in enterprise public cloud deployments by up to 85% (6:1). Take your cloud block storage bill, divide by 6, and that is the business case.

The following Amazon cloud deployment example employing data reduction demonstrates how data reduction delivers substantial savings:

If you provision 300 TB of General Purpose SSD storage for 12 hours per day over a 30-day month in a region that charges $0.10 per GB-month, you would be charged $15,000 for the storage.

With 6:1 data reduction, that monthly cost of $15,000 would be reduced to $2,500. Over a 12 month period you will save $150,000.

Bottom line, data reduction reduces costs of public cloud deployments.

If you are deploying in a private cloud environment
Organizations see similar benefits when they deploy data reduction in private clouds. IDC predicts $17.2B in infrastructure spending for private cloud in 2017. This demand reflects requirements for cloud's increased efficiency, flexibility, privacy, performance, and security.

The business case for data reduction in private cloud is based on reducing the cost of both storage hardware and excessive annual software licensing. For example, Software-Defined Storage (SDS) solutions are typically licensed by capacity and their costs are directly proportional to storage device expenses. Data reduction decreases storage costs because it reduces storage consumption, as demonstrated in the following example:

You deploy a private cloud configuration with 1 PB of storage infrastructure and SDS. Assuming a current hardware cost of $500 per TB for commodity server-based storage infrastructure with datacenter-class SSDs and a cost of $56,000 per 512 TB for the SDS component, you would pay $612,000 in the first year. In addition, annual software subscriptions over three years cost $836,000 for 1 PB of storage and $1,060,000 over five years,.

In comparison, the same configuration with 6:1 data reduction over five years will cost $176,667 for hardware and software, resulting in $883,333 savings.

If you are deploying a hybrid cloud
Hybrid cloud is the preferred cloud deployment approach today because it addresses data security concerns while still leveraging cloud efficiency. On-premises resources (private cloud) combined with colocation and multiple public clouds result in a highly redundant data environment. For example, IDC's FutureScape report finds "Over 80% of enterprise IT organizations will commit to hybrid cloud architectures, encompassing multiple public cloud services, as well as private clouds by the end of 2017." (IDC 259840)

One consideration is whether to depend on a single cloud storage provider, which can pose a significant risk to Service Level Agreement targets. Consider the widespread AWS S3 storage errors that occurred on February 28th 2017, where data was not available to clients for several hours. Businesses lost millions of dollars of revenue due to loss of data access. This highlighted requirements for a "Cloud of Clouds" approach where data is redundantly distributed across multiple clouds for data safety and near continuous accessibility. IDC forecasts that 85% of cloud deployments will be multi-cloud by 2018. Unfortunately, the Cloud of Clouds approach increases storage capacity cost (by having redundant copies in multiple clouds), and adds the networking cost to move and sync data between cloud deployments.

That's where data reduction comes in, as demonstrated in the following example:

In hybrid cloud deployments where data is replicated to the participating clouds, data reduction multiplies capacity and cost savings. If three copies of the data are kept in three different clouds, three times as much data is saved and data movement between clouds to sync them can be costly.

Take the private cloud example above where data reduction drove down the costs of a 1 PB deployment to $176,667, resulting in $883,333 in savings over five years. If that PB of data is replicated in three different clouds, the savings would be multiplied by three times for a total savings of $2,649,999.

Data reduction described
One data reduction application that can readily be applied in public, private, and hybrid clouds is Permabit's Virtual Disk Optimizer (VDO), a pre-packaged software solution that installs and deploys in minutes on Linux operating systems. Because it is deployed directly with Linux, it can be easily deployed in any public or private cloud today.

OS-based data reduction solutions such as Permabit VDO address public cloud, private cloud (including on-premises and hosted private clouds), and the bandwidth challenges faced in hybrid cloud environments. Data reduction can reduce storage requirements and network bandwidth consumption by as much as 85% (6:1 data reduction).

Data reduction solutions generally combine a number of techniques to reduce data footprint. For example, Permabit VDO applies three reduction techniques:

  1. Zero-block elimination uses pattern matching techniques to eliminate zero data blocks
  2. Inline Deduplication eliminates duplicate data blocks
  3. HIOPS Compression™ compresses the remaining data blocks

The graphic below visually demonstrates how simple data reduction really is and its impact on storing data.

21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world.

Download Show Prospectus ▸ Here

Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS - software, platform, and infrastructure as a service.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo, October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Track 1. Enterprise Cloud | Cloud-Native
Track 2.
Big Data | Analytics
Track 3. Internet of Things | IIoT | Smart Cities

Track 4. DevOps | Digital Transformation (DX)

Track 5. APIs | Cloud Security | Mobility

Track 6.
AI | ML | DL | Cognitive
Track 7.
Containers | Microservices | Serverless
Track 8. FinTech | InsurTech | Token Economy

Cloud Expo | @ThingsExpo 2017 Silicon Valley
(October 31 - November 2, 2017, Santa Clara Convention Center, CA)

Cloud Expo | @ThingsExpo 2018 New York 
(June 12-14, 2018, Javits Center, Manhattan)

Download Show Prospectus ▸ Here

Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers.  

Companies are each developing their unique mix of cloud technologies and services, forming multi-cloud and hybrid cloud architectures and deployments across all major industries. Cloud-driven thinking has become the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, and the public sector.

Cloud Expo is the single show where technology buyers and vendors can meet to experience and discus cloud computing and all that it entails. Sponsors of Cloud Expo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers.
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35-minute technical session
  • Online advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage.
  • Unprecedented PR Coverage: Editorial Coverage on Cloud Computing Journal.
  • Tweetup to over 75,000 plus followers
  • Press releases sent on major wire services to over 500 industry analysts.

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez by email at events (at) sys-con.com, or by phone 201 802-3021.

The World's Largest "Cloud Digital Transformation" Event

@CloudExpo | @ThingsExpo 2017 Silicon Valley
(Oct. 31 - Nov. 2, 2017, Santa Clara Convention Center, CA)

@CloudExpo | @ThingsExpo 2018 New York 
(June 12-14, 2018, Javits Center, Manhattan)

Full Conference Registration Gold Pass and Exhibit Hall ▸ Here

Register For @CloudExpo ▸ Here via EventBrite

Register For @ThingsExpo ▸ Here via EventBrite

Register For @DevOpsSummit ▸ Here via EventBrite

Sponsorship Opportunities

Sponsors of Cloud Expo | @ThingsExpo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35 minute technical session
  • Online targeted advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage
  • Unprecedented Marketing Coverage: Editorial Coverage on ITweetup to over 100,000 plus followers, press releases sent on major wire services to over 500 industry analysts

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez (@GonzalezCarmen) today by email at events (at) sys-con.com, or by phone 201 802-3021.

Secrets of Sponsors and Exhibitors ▸ Here
Secrets of Cloud Expo Speakers ▸ Here

All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo@ThingsExpo, October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-4, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Delegates to Cloud Expo | @ThingsExpo will be able to attend 8 simultaneous, information-packed education tracks.

There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content.

Join Cloud Expo | @ThingsExpo conference chair Roger Strukhoff (@IoT2040), October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, for three days of intense Enterprise Cloud and 'Digital Transformation' discussion and focus, including Big Data's indispensable role in IoT, Smart Grids and (IIoT) Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) Digital Transformation in Vertical Markets.

Financial Technology - or FinTech - Is Now Part of the @CloudExpo Program!

Accordingly, attendees at the upcoming 21st Cloud Expo | @ThingsExpo October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, will find fresh new content in a new track called FinTech, which will incorporate machine learning, artificial intelligence, deep learning, and blockchain into one track.

Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.

FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly developed, deployed, and scaled on public, private, and hybrid clouds.

More than US$20 billion in venture capital is being invested in FinTech this year. @CloudExpo is pleased to bring you the latest FinTech developments as an integral part of our program, starting at the 21st International Cloud Expo October 31 - November 2, 2017 in Silicon Valley, and June 12-14, 2018, in New York City.

@CloudExpo is accepting submissions for this new track, so please visit www.CloudComputingExpo.com for the latest information.

Speaking Opportunities

The upcoming 21st International @CloudExpo@ThingsExpo, October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY announces that its Call For Papers for speaking opportunities is open.

Submit your speaking proposal today! ▸ Here

About SYS-CON Media & Events
SYS-CON Media (www.sys-con.com) has since 1994 been connecting technology companies and customers through a comprehensive content stream - featuring over forty focused subject areas, from Cloud Computing to Web Security - interwoven with market-leading full-scale conferences produced by SYS-CON Events. The company's internationally recognized brands include among others Cloud Expo® (@CloudExpo), Big Data Expo® (@BigDataExpo), DevOps Summit (@DevOpsSummit), @ThingsExpo® (@ThingsExpo), Containers Expo (@ContainersExpo) and Microservices Expo (@MicroservicesE).

Cloud Expo®, Big Data Expo® and @ThingsExpo® are registered trademarks of Cloud Expo, Inc., a SYS-CON Events company.

More Stories By Wayne Salpietro

Wayne Salpietro is the director of product and social media marketing at data storage and cloud backup services provider Permabit Technology Corp. He has served in this capacity for the past six years, prior to which he held product marketing and managerial roles at CA, HP, and IBM.

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