Successfully Navigating the Choppy Waters of Storage Economics With John Toigo

World®
’16
Successfully Navigating the
Choppy Waters of Storage
Economics
Jon Toigo - Managing Principal, Toigo Partners International LLC
Session # MFT89S
MAINFRAME AND WORKLOAD AUTOMATION

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Abstract
It makes perfect sense to talk about storage in terms of dollars
and cents and ROI (aka: the business case). But is another
“economical” hardware refresh the right thing to do? Has your
company investigated ways to leverage and maximize utilization
of your existing storage? Confused about all the storage
economics messaging woo?
Attend this session and discover what storage expert Jon Toigo
has to say—not only about ways to improve storage efficiency
from a technical and operational standpoint but also from a
business efficiency perspective.
Jon Toigo
Toigo Partners
International
Managing Principal

Agenda
STORAGE ECONOMICS
IoT, MOBILE COMMERCE
OPTIONS AND TECHNOLOGY
1
2
3
SUMMARY5
TOP 10 BEST PRACTICES4 ELIMINATING FRICTION, BUSINESS AND TECHNICAL VALUE4

Storage Economics Is Suddenly on Everyone’s Mind
§ Cloud folks are worried about the “Zettabyte Apocalypse”
Capacity is outstripping supply
Copyright © 2016 by the Data Management Institute, LLC. All Rights Reserved.

Copyright © 2016 by the Data Management Institute, LLC. All Rights Reserved.Copyright © 2016 by the Data Management Institute, LLC. All Rights Reserved.
Internet of Things…
§ 50+ billion connected devices by 2020
– 228m smart phones in 2015
– 258m passenger cars in 2015 with
>100k data points per car
§ “Even if consumer adoption lags, big
business is all over it…”*
*The Battle for Smart Car Data, Bloomberg BusinessWeek, July 18,2016.
Goldman Sachs, http://www.goldmansachs.com/our-
thinking/pages/iot-infographic.html
Cisco Systems, http://www.i-scoop.eu/internet-of-things/

Mobile Commerce…
http://www.smartinsights.com/mobile-
marketing/mobile-marketing-strategy/future-mobile-
commerce/
• 22.14 EB of order data just from smart phones
• Doesn’t count tablet orders (already 3X greater)
• Doesn’t count data created by Systems of Insight
• Doesn’t count the “Starburst Effect”

The story thus far…
Customers increasingly mobile,
using apps (Systems of
Engagement) to peruse catalogs
and place orders
Customers apps interact with
mostly virtualized Systems of
Interaction, where incoming
requests are received and initially
processed…
Order information is shunted to
Systems of Insight where Big Data
analytics algorithms validate
purchase and payment details, and
scan customer account profiles for
up-selling opportunities…
The Hybrid Data Center in a Nutshell…
Good orders are booked and the
“Starburst Effect” occurs: one
customer transaction spawns
hundreds of transactions within
backend database “Systems of
Record”…
The process repeats millions of
times per second…
• Owners get rich
• Customers say nice things on
social media
• Business thrives
• Everyone lives happily ever
after…

The Digital Democracy
• UC Berkeley started it all with their How Much Information study in 2000, updated in 2003
• Noted that traditionally analog information was being converted or originated in
digital form
• Estimated total volume of digital data in 2000 was under 3 Exabytes, which had
grown to 5 Exabytes in 2002
• IDC (backed by EMC) took over estimating the size of the Digital Universe
• In 2014, IDC estimated that the 4.4 Zettabytes of digital information would grow to 44
Zettabytes by 2020
• Data that would be useful if tagged and analyzed constitutes 37% of all data, but less
than 1% is currently tagged or analyzed
• Moreover, less than 45% of the digital universe is protected: for most data, there is
no copy

Capacity demand will shortly outstrip supply…

What Has the Cloud Folks Worried
Capacity gap and cost
§ Industrial cloud providers
already concerned about
hosting 10-60 ZBs
– Huge profit potential for storage as
a service, but
– Where to find capacity?
§ Total flash industry output ~500 EBs
of capacity annually
§ Total disk industry output ~780 EBs
annually
– Inadequate to handle burgeon;
talking “Capacity Gap”
Source: Microsoft Azure, https://tapepower.fujifilmrmd.com/pdf/static/2015/ogus.pdf

In the Data Center, Capacity Demand Is Growing
§ Leading analysts have modified projections to reflect changes
in infrastructure platform choices…
By How Much Annually is a Matter of Some Contention

Server Virtualization Driving Capacity Demand
§ State of IT Infrastructure in 2016
Consolidating server computing infrastructure…
http://www.serverwatch.com/server-news/server-virtualization-market-is-peaking-gartner.html

Virtualization Driving Convergence/Hyper-Convergence
§ Software-Defined Storage is all the rage…
An effort to bring mainframe “multi-tenancy” to x86…the hard way
SDS abstracts value-add software services
away from storage controller and
instantiates services in a server-side
software stack…like mainframe SMS c. 1993

Hyper-Convergence Not Entirely Without Merit
§ “Atomic units of
compute”
§ Adopted by small
companies and by
many users of big
data analytics
clusters
§ Benefits…and
drawbacks…abound
Infrastructure by the “pizza box”

Drawbacks in the Form of Infrastructure Utilization
While some benefits seen, more important inefficiencies exist and grow
Source: Gartner, IT Key Metrics Data 2016: Key Infrastructure
Measures: Storage Analysis: Multiyear Published: 14 December 2015

Plus, It Is Encouraging Strange Ideas
§ Huh?!?
Like abandoning tiered storage for flat and frictionless storage architectures

Why would you do such a thing?
§ Tiering is intended to reduce
storage costs by constantly
migrating older data to less
expensive forms of storage
that are better suited to data
usage characteristics…
§ So “day before yesterday”!
Isn’t tiering important?
http://www.horison.com/OracleTieredStorageTakesCenterStage.pdf
Back of Envelope Math
1 Petabyte (PB) of Storage
• Using only Tier 00: $1.5 M
• Using only Tiers 1 and 2: $1 M
• Using Tiers 0-3: $587

Answer: To Eliminate All Friction!
§ “Data movement equals friction.”
§ “Friction equals latency.”
§ “Latency is bad.”
§ “Therefore, friction (and data
movement) are bad.”
§ Oh, and tiering is hard work.
Interesting, if misguided…

How to preserve/protect data in a “friction-less” infrastructure?
§ “Shelter in place.”
§ When storage node is filled with data that is not
accessed or updated, just power down the drive.
Then just add more nodes.
§ Voila! Instant archive, instant data preservation…
§ (Plays well with the AFA crowd.)
You don’t.

Might Work for Grad Students in a High Performance Computing Lab…
§ As a rule, storage is a
significant CAPEX expense
– Between 33 and 70 cents of
every dollar spent on
hardware depending on the
analyst one consults
– Back of envelope math
But in most commercial data centers, not so much…
Workload must be
known. Rewrite
rate of 1x per 3.5
years doubles cost
24 TB HAMR disks
promised by 2020
but more
expensive than
PMR HDDs
Not optimized for
fast writes or
frequent file
update
Source: Microsoft Azure, https://tapepower.fujifilmrmd.com/pdf/static/2015/ogus.pdf

Disk-based storage remains dominant in MF datacenter
§ Disk-based DASD costs ~$30/GB1
– 3390-3 volume is ~2.83 GB of storage
– Cost to acquire, $84.90 (not including maintenance, environmental costs)
§ Managing DASD storage (archive, included) requires time and
money, but makes dollars and sense
– Storage clean up practices requires 8 hours for six 3390-3 volumes
– Systems programmers cost roughly $90,000 per year so $53 per hour or
$424 to clean up six DASD volumes
– Clean up takes longer if you are doing file reorganization, and also archiving
and deleting files
§ Value of reclaimed storage is $840: Cheaper than buying new.
Simple cost model for well-managed DASD
1Jeff Shoup, Mainframe Product Leader, Ensono, https://www.ensono.com/insights/does-anyone-actually-manage-mainframe-storage-anymore

The Push is On for Mainframe Flash Systems
§ Nothing against all-flash arrays (AFA) but
– Your mileage will vary in terms of latency reduction
– Business applications need to be designed to take full
advantage
– Maintenance is not necessarily easier with flash vs disk
§ Simple truth is there is not enough production capacity for
flash or disk to meet the Zettabyte wave (or the portion
that will swamp your data center)
§ Only tape can possibly fill the void
The All-Silicon Data Center is the shiny new thing

Tape Is Ideally Suited for Archive
Where up to 80% of your data will ultimately reside…
Between 40-60% of data in tape libraries, off-site vaults:
Archive, fixed content, compliance, reference data
Between 20-25% of data in midrange arrays featuring SAS and
SATA:Vital, sensitive, business important data
Between 12-20% of data in high performance FC disk
arrays: Mission critical, OLTP, revenue generating apps
Between 1-3% of data in SSD: I/O intensive, response time critical
http://www.horison.com/OracleTieredStorageTakesCenterStage.pdf

Solid Technical Value Case
§ LTO-7 and Enterprise tape are increasingly appreciated as an
effective solution for mass file and object storage
– Capacity improvements from Barium Ferrite (BaFe) are extraordinary
and on-going
– Linear Tape File System (LTFS) gateways are simplifying data movement
between flash/disk tiers and tape tier
– Data access time determined by size of library, number of robots and
drives – from milliseconds to minutes, depending on infrastructure
– Once tape cartridge is in drive, time to first byte is ~45 seconds
– Jitter-free streaming with transfer rates of up to 750MB of compressed
data per second or 2.7TB of compressed data per hour per drive (LTO)
§ That, plus manageability, gives tape a solid technical value case

Business Value Case Is Also Strong
§ Cost-containment: tape-based storage is less costly to acquire and to
own than other storage infrastructure options; tape frees up expensive
flash/disk capacity
§ Risk reduction (downtime): tape-based storage provides data
protection via an air gap, plus media resiliency of up to 30 years and
much lower bit error rates than other media
§ Risk reduction (investment): no risk of early obsolescence, backward
compatibility guarantees, good runway for technology
§ Improved productivity: faster data transfer, cloud seeding, better
streaming rates and quality, greater data availability

Tape Archiving Can Significantly Reduce Storage Expense
And it is the cheapest way to store data over time…
“The 12-year cost of energy for disk is greater
than the entire TCO for tape over the same period:
Disk is 70 times more costly than tape, based on energy cost alone.”

Perhaps This Is What Is Driving the Tape Renaissance
§ As are cloud operators
Novice IT practitioners are generating interest in tape…
• Media capacity, resiliency and durability accelerating
• Cost per GB declining
• Performance and ease of use improving
• Air Gap protects against Ransomware

Hasty Conclusions
§ Storage economics still favor storage
tiering and data archiving
§ The real cost containment benefits will be
seen with better data management (a talk
for next year, perhaps)
§ CA Technologies offers numerous products
in its portfolio that can help to bend the
storage cost curve: check them out!
Nothing magical about storage cost containment…

Questions?
• Thanks!
• Please keep in touch
• Email: jtoigo@toigopartners.com
• Linkedin: Jon Toigo
• Twitter: @JonToigo
• Blog: DrunkenData.com
• Websites:
• IT-SENSE.org
• Data Management Institute
• Toigo Partners International

Questions?

Stay connected at communities.ca.com
Thank you.

Mainframe and Workload Automation
For more information on Mainframe and Workload Automation,
please visit: http://cainc.to/9GQ2JI

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