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By Judy Mottl
Saving bucks is on every tech leader's agenda and one place to start is reviewing the costs of data storage and management.
Why? One reason is that many companies are saving every data nugget thanks to cheaper storage hardware and technology and as part of a quest to fend off compliance and regulatory headaches. But what many CIOs may not realize is that the cost of managing all that data—manpower and consulting services—is rising while hardware costs are dropping.
"Companies are over saving as most want to play it safe and have the mentality that as long as I save everything nothing can go wrong," says Alani Kuye, managing partner at Phantom Data Systems, noting just 10 percent of data is actually usable and needed for quick access. That means companies are typically backing up data that doesn't require backup and are not efficiently using storage technologies.
"For example, archiving and backup get confused, which can increase costs. Then there are costs in finding needed data and in losing critical information," Kuye notes.
"Enterprises are almost better off destroying data than having it and not being able to find it when a legal or regulatory problem comes up in that regard," he adds.
The first step to save on data storage, say experts, is implementing an inventory effort.
"You need to find out where the data is coming from, where it's going and how you're storing and securing it," advises Kuye. "This will also open the door to potential savings and benefits," he adds.
With a strong management plan, data storage and management can be revamped into a profit center if companies realize the potential value in saved data, say experts. For example, information on customer activity could prove vital for improving customer service, but if that data isn't easily accessible that benefit can't be gained.
Once an inventory is completed, the next step is implementing policies and consistent auditing practices.
Policies can guide tech leaders on what data should be saved, the most cost-efficient tools to use and what data can be deleted - after all, the less data to manage the less money spent.
Audit processes ensure older data remains readable and on working media for future access, which can avert costly legal and compliance challenges.
Those are serious issues within the medical industry, notes Meryl Frost, CEO and president of Medical Imaging Group. Frost recommends CIOs in the healthcare industry to consider using a tiered storage approach as it allows for efficient use of expensive storage technology that's needed for retaining active data.
"Medical centers are generating 20 to 30 terabytes, which was unheard of two to three years ago and the focus must be on what needs to be kept and what can be tossed," says Frost.
Another option, he notes, is moving from a decentralized and distributed data environment to a centralized system.
"Yes, it's a leap backward in relation to how most companies have been doing data management but in addition to storage costs you have increasing security costs to deal with," says Frost. "Having one place brings an economy of scale," Frost says.
Another aspect to keeping storage costs down, notes an industry expert, is keeping an eye on emerging technologies.
"Costs can be controlled by reducing the sheer volume but, more importantly by taking advantage of newer management tools," says Mark Peters, senior analyst at Enterprise Strategy Group.
Yet while savings can be gained in using several vendors and solutions, an overly complex data storage environment can be costly to manage, warns Peters. He says IT leaders may want to consider an "uber-management tool' that lets storage administrators run everything from one console, which can reduce costs.
"One of the biggest challenges is [management] inertia, so a good rule of thumb would be for IT leaders to take some 'quiet time' at least once a year and re-examine their storage management programs and processes in terms of what you are doing and why," advises Peters.
"Waiting for lease renewals or write-down times may be too late and the opportunity cost of waiting too long could exceed the value of change," he adds.
Resources:
Medical Imaging group
Phantom Data Systems Inc.
Data Storage, Disaster Recovery, and Data Center Power Solutions
Enterprise Strategy Group
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