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Why Corporate Cloud Storage Doesn't Add Up

snydeq writes "Deep End's Paul Venezia sees few business IT situations that could make good use of full cloud storage services, outside of startups. 'As IT continues in a zigzag path of figuring out what to do with this "cloud" stuff, it seems that some companies are getting ahead of themselves. In particular, the concept of outsourcing storage to a cloud provider puzzles me. I can see some benefits in other cloud services (though I still find the trust aspect difficult to reconcile), but full-on cloud storage offerings don't make sense outside of some rare circumstances.'"

35 of 141 comments (clear)

  1. we get approached all the time by Anonymous Coward · · Score: 5, Interesting

    I work for a printing company... cloud storage companies call us all the time with the pitches. Then they ask .. "how much data are you currently backing up?" .. we say "around 38 terabyte's" .. they say .. "no .. we aren't asking what your archives are, we are asking what your daily backups are." we say "we back up once a week. our weekly backups are around 38 terabytes." Then they say "that is a little more than we can handle" so I ask "well what can you handle?" almost every one of them has said they generally look for companies that have between 500GB and 1TB of storage. I guess if you fit that spec, it would work.

  2. Private cloud by Cryacin · · Score: 5, Insightful

    I just came from a very large banking organization, and their business case for cloud is to set up a series of private cloud servers. It's not about putting everything on Amazon etc, but rather about putting the services into their own datacentres.

    They will literaly save hundreds of millions in hardware and power bills, as they can consolidate tons of servers together. The reason? Most boxes that they current have, utilize 1% of network traffic, less than 1% of CPU, and about 10% of hard disk space. Why? Because every project has their own boxes for political reasons, for redundancy, and most importantly, so that when they saved $10,000/year on hardware, they didn't lose $1,000,000 because the service was unavailable for half a day.

    Because private cloud means that you have an instant sandbox for your apps, over a number of servers that the app can freely be moved to, this is the driver behind adoption of the model.

    Public cloud is laughable to them, as the public cloud providers can pry their data from the company's cold dead hands.

    Not to mention the wonderful PR side effect of the company being "green".

    --
    Science advances one funeral at a time- Max Planck
    1. Re:Private cloud by PatPending · · Score: 4, Interesting

      Not to mention the wonderful PR side effect of the company being "green".

      Yup. Here's a pull-quote from a 2/13/2012 Dell press release, "Dell Opens New Western Technology Center in Quincy, Washington":

      "Dell is proud to be listed as one of the top Green IT companies in the world," stated Patrick Mooney, executive director, Dell Services. "Our efforts to optimize the Power Usage Effectiveness at our Western Technology Center appeals to customers who want to consider the impact to the environment when configuring their IT solutions and to our environmentally conscious team members who participate in green initiatives across Dell."

      "Power Usage Effectiveness" was originally coined "Power Usage Kilowatt Effectiveness" until someone pointed out its acronym.

      --
      What one fool can do, another can. (Ancient Simian Proverb)
    2. Re:Private cloud by SecurityGuy · · Score: 4, Insightful

      The problem is you're talking about virtualization, not cloud. Cloud is a real thing that not many people actually do. It's also a nonsense buzzword sprinkled like MSG across the menu of everything IT does. Excuse the pun, but virtually none of what is called cloud deserves the name.

    3. Re:Private cloud by hawguy · · Score: 4, Insightful

      I just came from a very large banking organization, and their business case for cloud is to set up a series of private cloud servers. It's not about putting everything on Amazon etc, but rather about putting the services into their own datacentres.

      I'm not sure why you got an "insightful" rating for your comment. While what you said is true, a corporate private cloud is not the public cloud the submitted article is talking about.

      Private cloud storage has always been around, but it used to be called a "fileserver", or maybe a "SAN", so just because they are calling storage consolidation a "private cloud" doesn't mean it's something new.

    4. Re:Private cloud by SecurityGuy · · Score: 4, Insightful

      Undoubtedly so. In fact I can't imagine for a second that Amazon and the like aren't running on VMs. But you're exactly right. Virtualization by itself is not cloud any more than an engine is a car. There, you knew there was a car analogy in there somewhere, didn't you? ;-)

      It's not a mistake, though, it's marketechture. Virtualization is old hat. You can't get people to shell out the big bucks for that, but if you rebrand it "cloud" (ooooh!) you can get people to pay more.

    5. Re:Private cloud by Idarubicin · · Score: 2

      Private cloud storage has always been around, but it used to be called a "fileserver", or maybe a "SAN", so just because they are calling storage consolidation a "private cloud" doesn't mean it's something new.

      Indeed, "cloud" has become the must-have buzzword for everything and everyone. I was amused to see that Western Digital is selling a home network storage appliance as a Personal Cloud.

      --
      ~Idarubicin
    6. Re:Private cloud by DrJimbo · · Score: 2

      [...] what makes a cloud and virtualization different is the provider, cloud is 3rd party: amazon, etc...

      Marten Mickos (CEO of MySQL for 7 years) disagrees with you: Keynote at Cloud Expo Europe - Clouds Are All About APIs..

      His new product provides in-house cloud services. If you listen you his talk you will understand why in-house clouds are very different from virtualization. You can buy co-hosted virtualized servers. They are different from cloud services. The same distinction exists when these services are provided in-house.

      --
      We don't see the world as it is, we see it as we are.
      -- Anais Nin
    7. Re:Private cloud by turbidostato · · Score: 2

      Good rant... except for the little fact that you did forget about defining "cloud".

      "Cloud" is marketroid speech and because of that, with a purporsely "nebulous" definition (pun intended): so others can say "but, ah! your cloud is not the real cloud, mine is".

      I for one would say that if the customer is not location-aware and can self-service on-demand, it is cloud. And certainly you can have storage delivered that way.

    8. Re:Private cloud by Hognoxious · · Score: 4, Funny

      so others can say "but, ah! your cloud is not the real cloud, mine is".

      Nobody takes them cirrusly.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    9. Re:Private cloud by Krokant · · Score: 4, Insightful

      And I don't understand why you get insightful for your comment :). There is a big difference between a traditional approach to IT, which involves fileservers, SAN, mailboxes, ... and a "private cloud" approach. What most techies do not comprehend, is that cloud computing is not a technology, but *a delivery model* for ICT services. Any existing service can be wrapped in a cloud coating, if that service is delivered in another way, to adhere to some fundamental characteristics of cloud computing (see for example the NIST definition). That is: you need to deliver your service anywhere, anytime, from any device (ubiquitous access), it needs to be in a self-service form, it needs to scale elastically (without waiting weeks for new servers to be delivered, ...), etc. Those are service characteristics that in the end will of course use technologies such as a SAN or fileserver or mailserver to deliver that service. It's just one logical layer higher than the technological layer. People who claim that cloud computing is "old stuff", have not understood what cloud computing is about.

    10. Re:Private cloud by Belial6 · · Score: 2

      I like to go with the original definition. If you know what is being done with your data, it isn't a 'cloud'.

    11. Re:Private cloud by arth1 · · Score: 2

      "Most boxes that they current have, utilize 1% of network traffic, less than 1% of CPU, and about 10% of hard disk space." -> I will point out that that's not a bad thing.

      Clap, clap. Well done. Give that man a cigar.

      Part of the problem is that many of the older leaders come from big companies and are used to big iron. Nothing wrong with big iron - in fact, I think it's often the right solution. But, if that's what you're used to, you tend to think that 100% utilization is a good thing.
      In the midrange world, it isn't. Everything goes pear shaped a long time before that. Part of the difference is that services are incredibly more volatile and far fewer, so they don't balance against each other the same way as LPARs. Talk about "sustained" throughput is more often than not meaningless in a midrange world - it's the peaks that matter, and which will kill you.

      I have switched out systems with 1 load because they didn't have the required performance. And someone with a little knowledge (and we all know about a little knowledge) in upper management asks why, and I have to explain that in a midrange world, when the peaks hit, I can't borrow against the pool or take a charge. If he can find a way to get customers to use the service less during lunch hours, or more early AM, he should do so, but as long as they do what they do, I have to provision for the peaks, with capacity to spare. So 1% utilization isn't bad. It's doing what it's supposed to: it's ready for the peaks.

    12. Re:Private cloud by kilfarsnar · · Score: 3, Insightful

      Maybe if you didn't post as AC you'd get mod points. They're even better than Like buttons.

      --
      "What the American public doesn't know is what makes them the American public." -Ray Zalinsky (Tommy Boy)
    13. Re:Private cloud by turbidostato · · Score: 2

      ""Private cloud" is virtually an oxymoron"

      No, it is not.

      "Cloud is not defined by the hosting facility/type, whether self, 3rd party, or co-lo"

      Yes, you are right on this.

      "Nor does it have to be virtualised architecture"

      Truly. Right again.

      "Cloud IS a decentralised, distributed set of services & infrastructure, that are made centrally available - the user/customer doesn't & shouldn't give a rat's arse where/what the apps run on, how the database is stored or who is doing the admin/maintenance"

      Right again. And exactly *this* is what makes "private cloud" not only not an oximoron but a very obvious reality. My (internal) users have no idea where the resources are and you can bet they are decentralised, they don't get a rat's arse where/what the apps run on, where the database is stored or who is doing the admin/maintenance. They only know they have a portfolio of products/services they can serve themselves and that's all.

      "Good examples of true cloud computing/services are Google & Amazon."

      And who tells you a big company cannot offer exactly the same kind of products and services to their internal users? Unless "cloud" is defined to be "whatever Amazon or Google do because they are Amazon and Google" there're exactly zero obstacles to offer the same within a company: therefore the term "cloud" with the qualifier "private". In fact, given the money or the use case my users even don't know if they are using infrastructure from their own company or from Amazon/Rackspace, which adds another qualifier: "hybrid" + "cloud".

  3. Uh, what? by fuzzyfuzzyfungus · · Score: 2, Insightful

    Ok. Somebody is completely off-their-head nuts, either the author or the people he is writing about(and I have my suspicions about the author...)

    To the best of my knowledge, nobody pitches this 'cloud storage' stuff as a replacement for local storage, unless they are also selling some hosted software-as-a-vendor-lock-in 'solution'. It's a sufficiently overwhelmingly bad idea that nobody even tries. So, what exactly is he wasting an article on?

    Yup, SATA drives are cheap and reasonably zippy. Y'know what's less cheap, more complex, and not as zippy? Good Backups, including offsite. And that, (along with the web hosting and CDN focused stuff) is what the 'cloud' people are selling. No shit delivering files over the internet with a 200ms round-trip and a teeny pipe isn't going to replace the local storage or a network share a couple of GigE hops away. Replace that balky tape library the next time it conks out, though? Not certain; but much more conceivable...

    1. Re:Uh, what? by roc97007 · · Score: 2

      Yeah, especially since most local storage these days are appliances that pretty much manage themselves. And there's that physical access part of security -- if it's locked in your machine room with no path to the outside world, it's a lot harder to steal your data.

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    2. Re:Uh, what? by guruevi · · Score: 3, Informative

      I don't know if you have been in corporate IT lately but these people selling the crap are indeed selling this as the end-all-be-all of computing. Everything (data storage, web hosting, virtual servers, desktops, crm and similar databasing needs, e-mail, ...) is supposed to be in the cloud at a much lower price point. Microsoft is one of the worst offenders as they sell their entire suite (Exchange, AD, ShitPoint, Office ...) in the "cloud" these days, promise the world but have no way to deliver.

      If you have an IT organization with more than 2 IT people where stuffing the "cloud" (or having everything hosted for you) is going to end up being cheaper you have a really badly managed department that is extremely bloated.

      For enterprise data storage: average price is $1,000/TB/year (Amazon et al) while a decent locally managed system (SAS, HA) should be ~$100-300/TB/year. Off course if you pay NetApp or the like (at ~$3,000/TB/year) for your storage, you brought this upon yourself and the person making that decision should've been fired.

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
    3. Re:Uh, what? by Score+Whore · · Score: 2

      I suppose if you're a tiny company with a tiny amount of data to backup it'd make sense. If you had even a few tens of gigabytes of data why do you want your offsite storage behind a network connection that can deliver perhaps 1 MB/s? Sure if I want to do an occasional file restore, but when the shit hit the fan I want to be able to bring a crate full of tapes into my data center and streaming off of 8 tape drives at 400 MB/s.

    4. Re:Uh, what? by TPoise · · Score: 5, Informative

      The problem is that file storage is so dad-gum expensive these days. 15cents a gb at Amazon makes it $150 per month for a terabyte of storage. You're better off buying the 1TB drives yourself and rotating it to an employee's house every night. Sure there are some cheaper alternatives (nimbus.io) but even at 6cents a GB with Nimbus, you're still better off buying the external drives yourself.

  4. Re:Duh by axlr8or · · Score: 3, Insightful

    I would guess, this was some wort of deal cooked up by 'media' industries to get your stuff off your computer and out somewhere that it could be searched for infringements. They tried to make it look 'cool' by using the Apple model. I'm glad to say, most people I know aren't stupid enough to buy into it..

  5. Re:Author is clueless about current IT. by hawguy · · Score: 3, Informative

    We use Box for 300 people in 8 countries and I use Dropbox and Skyfile for personal file storage and sharing. There is a place for Cloud storage in corporate IT since the end users are using these services on mobile devices already. The author is obviously out of touch with current CIO initiatives, I talk to these guys everyday and most are looking to use cloud services for file storage and sharing.

    Do any of these CIOs run companies that fall under SOX, HIPAA, or PCI? How does your CIO ensure that files stored on the cloud storage meet any of those regulatory requirements? All it takes is one personnel file with medical records to leak into the wild to for the company to face liability under HIPAA for unauthorized release. If the company knowingly allowed sensitive files to be stored in unsecured storage, the penalties could be substantial.

  6. The cloud has always existed for Corp IT by jeffc128ca · · Score: 5, Insightful

    Why don't people look in the history books of computing. If they did they would see that in the before the 80's everything was in "the cloud", except back then they called it servers. They rented these servers and the storage space from IBM, Digital, HP and a few other server providers. The personal computer came a long and data started shifting on to local hard drives and WIntel or Novell LAN servers.

    Now they have the problem of trying to maintain every spreadsheet and Access DB sitting on a managers laptop. To solve this they are going back to the future and storing stuff back on servers sold to us by young people who never knew what DASD is. Controls and audits will demand restricted access and rules be put in the cloud for protection just like before. After about 10 years we will all be bitching and complaining about the cloud and praising local storage for it's ease of access and not having our data held hostage by providers. Lather, rinse, repeat.

    There is nothing new under the sun people, just move along.

    1. Re:The cloud has always existed for Corp IT by SecurityGuy · · Score: 5, Insightful

      Those who forget history are doomed to pay overpriced consultants to reinvent it for them.

    2. Re:The cloud has always existed for Corp IT by ColdWetDog · · Score: 2

      The Wheel of Time turns, and Ages come and pass, leaving memories that become legend. Legend fades to myth, and even myth is long forgotten when the Age that gave it birth comes again.

      --
      Faster! Faster! Faster would be better!
  7. The bottom line is we don't need IT department by presidenteloco · · Score: 2

    Ok. Maybe one person to be an adviser on which services to use and how to configure them, (and which Mac models to buy heh heh) but that's about it.

    In that context, cloud storage makes eminent sense because for the cloud service provider, providing reliable storage, or apps, or whatever, is their core competency.
    It is not your company's core competency. They will do it better than you. Period.

    Such storage would make even more sense if it was properly fragmented, onion-routed, multiply encryption-wrapped, encryption-upgradable-in-place etc etc etc but that will all come, as will, one hopes, open standards so that cloud storage is not vendor-locked.

     

    --

    Where are we going and why are we in a handbasket?
    1. Re:The bottom line is we don't need IT department by SecurityGuy · · Score: 2

      It is not your company's core competency. They will do it better than you. Period.

      The notion that companies should do only one thing is misguided. They shouldn't squander their resources trying to be everything, true, but for companies beyond a certain size, they can provide these services cheaper than "cloud" companies can. Why? Well, because the provider isn't doing anything you can't do. If you're a big company or a government, you already own data centers. You already own staff. You already own software. In short, you're already providing the service, and you're doing it cheaper.

      I know we're all supposed to drool when anybody says cloud, but I've priced it vs. our own cost to provide. We're cheaper. Hands down. Not even close.

    2. Re:The bottom line is we don't need IT department by billybob_jcv · · Score: 4, Insightful

      Right - and when you can integrate your SAP Cloud ERP system, your SalesForce.com CRM system, your Workday HRIS, *and* the data from your 500 retail locations that you poll daily, all within your Netezza AppNexus data warehouse to generate dashboards using your MicroStrategy MCDWS BI system, without your IT department, you let us know...

    3. Re:The bottom line is we don't need IT department by smash · · Score: 2

      They will do it better than you. Period.

      They will comply with their SLA better than you, you mean. And if the cloud provider goes under (e.g., we have another dotcom crash), are there any guarantees you get your data back? How about the peeps with stuff on megaupload?

      --
      I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
    4. Re:The bottom line is we don't need IT department by exomondo · · Score: 2

      In that context, cloud storage makes eminent sense because for the cloud service provider, providing reliable storage, or apps, or whatever, is their core competency.

      And yet we still see failures from the biggest players like the EC2 crash, the Danger fiasco, iCloud failing or gmail outages. Go 'The Cloud'.

      It is not your company's core competency. They will do it better than you. Period.

      Yeah because we all know McDonalds' IT systems are managed by the guy flipping the burgers, they don't actually have qualified IT guys there. Seriously you haven't realized that it's just outsourcing the IT department? You think these 'cloud' providers are some other sort of entity that aren't just IT guys running an IT contracting business as opposed to internal division?

  8. Good for backups, but few decent svcs exist by Craig+Ringer · · Score: 4, Informative

    For me the one attractive use case for cloud storage is for backups - and it's one that's catered to particularly poorly by current offerings.

    For backups, you want (a) fast, unmetered links to the host and (b) moderately reliable, cheap, and not-that-fast storage you can access in a variety of different ways depending on what's most convenient, with or without running your own VPS to mediate between storage and storage clients.

    One user will want to rsync to their cloud storage. One will want to remote-mount a file system on it via iSCSI. Another will want to run a Bacula storage daemon on it. Yet another will want to use it as a co-ordinator for a full network backup system. All these use cases should really be supported, and the first two shouldn't need the customer to maintain their own VPS to control the storage.

    As things stand, almost everyone wants to sell SAN-based high performance storage that's *expensive* and *fast*, not cheap and slow. Most backup services seem to want you to use their tools or a local appliance to talk to their storage. Half of them act very confused when you mention "Linux" or "UNIX" and ask if that's a new kind of Mac or something. At least in Australia I've found the market miserably unsatisfying so far.

    What I'd really like is for ISPs to begin offering, or partnering with others to offer via peering, bulk near-line storage at moderately affordable rates. That way you can talk to it over your business's main ADSL/SHDSL/fibre/whatever link(s) without dealing with quotas, it's fast, there are multiple routes to it, and it's unlikely to go down if an international link has a hiccup.

    iiNet's cloud offering looked like it might have potential for this, but it turns out to be just another EC2-wannabe crossed with Linode-done-badly-and-expensively. The storage offerings are miserable and they don't even mention whether traffic between iiNet internet services and their cloud is metered

  9. Re:Use a Mac in Enterprise by Osgeld · · Score: 3, Funny

    obviously the solution is to move the shares to an offsite location on a much thinner pipe

  10. Storage is pathetic by Craig+Ringer · · Score: 5, Insightful

    I have the same issue. I work for a small suburban newspaper, and even our hot data set is over 1TB, plus append-only archival data of more than 4TB.

    When I tell these "cloud backup" providers this they do a double-take and then start talking laughably high prices or they just back off and say they can't really handle our archival data set. It's quite pathetic when my 10TB backup storage server in a fire-resistant, water-resistant enclosure in the shed cost under $5k when built - and that was when 10x1TB disks was a lot so the disks cost over $2500 by themselves.

    Because I'm in Australia I also have the issue of bandwidth. I'd need a backup provider to peer with my ISP via a local peering point that offers unmetered traffic; with 100GB/month limits considered very big here I couldn't possibly back up over a metered link. Even then, my redundant two ADSL2+ links achive about 6Mbit/750kbit and 4Mbit/500kbit per second each, so I'd probably need to pay to run fibre from the nearest line along the train line (est $50,000) and pay over $1000/month for a fibre service just to talk to the backup storage host.

    I'm negotiating to move our backup server to a business down the street and run an 802.11n point-to-point directional link between us instead. We each get to fail over to each others' Internet services if necessary, we exchange backup storage, and neither of us gets to pay through the nose for it. It's not as good as a fast link to a DC somewhere, but it's a hell of a lot more practical.

    The other issue with cloud backups arises when you need that 5TB (mine) or 38TB (yours) in a hurry, for disaster recovery. You can't exactly run down the street and grab the server with its disk array then restore over 1Gbit ethernet or direct to locally attached SAS/eSATA/whatever. Nope, you have to download all that data over whatever Internet link you have access to. If that's not the dedicated fast link your premises has (say, if they've burned down) then you are screwed.

    I'll keep my primary backups within driving distance, thanks.

  11. cloud storage? no thanks by smash · · Score: 2

    At the end of the day it comes down to this: who is responsible for keeping your data? With failures in amazon's cloud service, a provider over east in Australia that got hacked and lost all backups, etc - trusting your company's data to someone else is a BIG call to make and understandably, many businesses are wary of the idea.

    At least if the data is stored on premises, and on backup tapes, you have options with regards to data retention/data recovery. Once you upload all your stuff to the cloud, you're at the mercy of your cloud provider. Sure, you may have an SLA, but SLAs mean shit if your company is unable to get access to it's data when required - or would like to prevent third parties from obtaining access to data (such as foreign governments) that the cloud provider may be persuaded or legally required to divulge.

    --
    I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
  12. It doesn't make sense on a small scale either. by bmo · · Score: 2

    I signed up for Dropbox and my experience with it is that it's slow as molasses when uploading and I can't just drop a link there and have it point at my server. Nono, I must upload the entire file itself.

    Most people would be better off with Opera Unite. While some here may laugh and point at it because it is not a full-blown server setup, it is probably the easiest ad-hoc file sharing/server program going. Sure, I've personally installed Apache, sftpd and sshd on my home server but just the concepts of these services alone are beyond the grasp of most people. Opera Unite makes this kind of thing drool-proof.

    You declare which directories are shared and that's it. You're done. No uploading to the "cloud" like Dropbox, Skydrive, or Apple's music thingy (and Unite will do media streaming). And you don't get locked in or risk losing control of your data should the cloud service get closed down.

    --
    BMO