Can SAN Win SMEs Over?

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DQI Bureau
New Update

Enterprise storage in India is still largely direct-attached or server-based,
but networked storage is growing rapidly. NAS and SAN are getting faster, and
these storage options have gained acceptability among Indian enterprises, though
SMEs are still reluctant to take the bait. Most of the SMEs are still limited to
DAS (direct attached storage), and are reluctant to migrate to even NAS, forget
SAN.

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Leading
Indian Vendors’ Revenues from SAN (in Rs cr)
HP 98.65
IBM 70.09
Net
Apps
5549.00%
EMC 30
Sun 30
Others 21.85
(Others
include storage software vendors like CA, Veritas, Legato, StorageTek
& Bakbone)
*DQ
Estimates

Roadblocks for SMEs

The principal reason behind this reticence is plain economics, the perceived
notion that SAN is an expensive proposition especially for an Indian SME kind of
set up. However, Anil Valluri of Sun Microsystems feels ii is high time this
myth is dispelled. "Networked storage is not strictly an ‘enterprise-only’
concept. Unfortunately the perception is that it is cheaper to add NT servers,
than to put in a NAS or entry-level SAN for that matter. However, companies
doing this risk facing a storage management nightmare." With entry-level
NAS products shipping for a few lakh and even SAN coming in for less than a
million rupees, it is time for SMEs to take note and plan their storage
accordingly.

According to Gartner estimates, SAN would account for 49 percent of the
storage revenue pie in India this year, but the SMEs contribution towards this
would be negligible. Anal Jain, country manager, Net Apps believes that not only
costs, even the complexity involved in a SAN deployment and management is a big
hindrance for SMEs towards a large scale migration.

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There
is no single, open standard as yet for interoperability between SAN management
products from different vendors. They can be set up in myriad permutations, and
include many connections among host bus adapters, switches, RAID disks and SCSI
or Fibre Channel disk arrays that enable storage solutions on multiple platforms
and operating systems. Add to this, a huge installed base of proprietary
components, and SANs become somewhat of a nightmare to manage. Coupled with
this, the majority of SAN management software, with the exception of the data
management sector, are still tied to specific hardware products. The lack of
interoperable and hardware-diagnostic standards have made it difficult for
vendors to present a truly heterogeneous software solution, even if they wanted
to. This makes it doubly difficult for IT managers with SMEs to look for SAN
deployment, as they are already constrained by lack of quality skilled manpower.

Increasing adoption

Despite, the lack of SAN penetration into SMEs till now, the picture is
getting brighter. This coincides, more with SMEs too facing a large influx of
mission-critical data. And the storage vendors too are coming up with offerings
that bring down the costs and reduce the deployment complexity. For example, IBM’s
"SAN made Simple" offering is priced at Rs 9 lakhs and can be
implemented in three to four days. According to Vaidyanathan Iyer, country
manager, Apara Networks, one of the country’s largest SI for storage, SAN
reduces the total cost of ownership (TCO) factor. "SANs significantly
reduce TCO.

The reduction of TCO very rapidly throws up very good RoI around SAN
deployment. No wonder organisations invest on SAN deployment even in periods of
economic slowdowns because SAN directly helps them save money," says Iyer.

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In fact, some players like Quantum and Legato even feel that the market is
right now ripe for targeting SMEs with SAN solutions. With SMEs having more than
10GB of data that need protection, SANs are bound to be increasingly accepted.
IBM is also helping its SME customers accelerate the adoption of SAN in their
computing infrastructure and how their storage needs can be met with these
solutions. With RBI and SEBI guidelines making policy-based backups mandatory
for banks and financial institutions, more and more SMEs in the BFSI vertical
are adopting SANs.

Weighing
Scale: SAN vs  NAS
  SAN NAS
Speed 2-10Gbps 100
Mbps —1 Gbps
Time
needed to set up
3-4
days
Few
hours
Average
deal size
Rs
50 lakh-Rs 3 crore
Rs
20-25 lakh
Verticals BFSI,
Telecom, Manufacturing, Oil and Energy
Software,
Chip design and Media
Used
for...
Consolidating
transaction-based systems like ERP, databases and OLTP
E-mail,
user data and other file-based applications

Advantage SAN

What are the other advantages of SANs for the SMEs? SANs provide a storage
infrastructure that support server clustering or multi-server data access for
databases and transaction systems in a campus environment. They are also being
used for local area network-free backups. SAN solutions can be deployed starting
from data of 1 TB onwards with 10 servers. The increased implementation of high
availability enterprise level applications such as ERP, CRM and data warehousing
software even across SMEs has contributed to the growing storage market in
India. These applications involve tremendous data analysis and distribution, all
of which require storage.

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If the Word SAN is synonymous with expensive and complex for SMEs, there may
be some good news in the offing. IP SANs attempt to solve all that and give a
fresh lease of life to an enterprise’s existing Direct Attached Storage (DAS)
hardware. Industry experts expect to see IP SANs in action in the coming year.
Fibre channel SANs will continue to be the best option for pure performance, but
they will be superseded by IP SANs in a multitude of applications that are not
so mission-critical.

In addition, SAN is finding its niche in storage consolidation or business
continuity solutions amongst SMEs. For years organisations have been using
server-attached storage, server hard disks and tapes. This makes data sharing
complicated and backups difficult to administer. It is high time that they
consolidate their storage be it tape libraries, SAN or NAS, to a central
location. Storage consolidation offers flexible and centrally managed storage
that can be distributed to provide the performance and availability demanded by
applications. It lets organisations manage growth, control security and
information access, and provide rapid response to changing business demands.

Rajneesh De

(Voice & Data)