Issue dated - 31st March 2003

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Front Page > Storage Print this Page|  Email this page

Storage

DAS users go in for network storage

With the exponential increase in data capacity, it has become imperative for companies to gradually move away from DAS to NAS and SAN as networked storage offers higher storage capacity and is easier to manage says Akhtar Pasha

As per the preliminary IDC Q3 2002 Tracker report, the disk storage market was valued at $72.1 million during Q1 to Q3 2002. The new HP dominates that market space with a 36.3 percent marketshare with $26.2 million in revenues. IBM is the runner up with a 18.3 percent, while Sun comes in third with 11.5 percent market share from $8.3 million revenues.

The external storage market was valued at $40.5 million with a total of 706,303 GB shipped between Q1 to Q3 of 2002. HP was the clear winner with 32.5 percent market share and $13.2 million in revenues. Network Appliance moved up from third position to second with a 19.7 percent market share valued at $8 million in revenues. IBM with $6.5 million and Sun with $4 million held the third and fourth place respectively.

Naveen Mishra, senior analyst for computing products research group at IDC India says, “Enterprises are concerned about data protection, business continuity and disaster recovery and all these are contributing to the growth of the enterprise storage market in India.” IDC says verticals like IT, ITES, telecom, education, government and BFSI have been the key spenders on storage solutions. Efforts are on to give concrete shape to the concept of storage virtualisation in the Indian market.

The other significant factor driving the growth of storage is the implementation of enterprise applications such as ERP, CRM and data warehousing. These apps involve tremendous data analysis and distribution, all of which require storage.

Companies that have gone in for disaster recovery (DR) solutions last year are looking at adding one or more disaster recovery sites this year, says Avijit Basu

Trend

Storage consultancy
This area is expected to witness massive growth in India. HP’s revenues from this niche grew 100 percent.

Meanwhile, Movinture Storage Network, a start-up company, has forayed into this space. Storage consultancy involves consulting and storage services in designing and managing enterprise Storage Area Networks (SANs). Movinture plans to get $1,50,000 revenues from storage consulting in the next one year.

Adaptive storage
Rana Dutta, regional director for APAC at Movinture Storage Networks says, “Instead of reinvesting in storage, an enterprise’s goal should be to manage its storage growth and make efficient use of capacity with integrated storage management tools for interoperability. The better way to do it will be to have a utility-based adaptive storage architecture. HP is strongly pushing this architecture in India.”

Adaptive storage enables an enterprise to use a single console to manage disk subsystems from multiple vendors.

Disaster management now an essential
Companies that have gone in for disaster recovery (DR) solutions last year are looking at adding one or more disaster recovery sites this year. Avijit Basu, marketing manager for NSSO at HP India says, “Companies are looking at increasing their number of DR sites. We had implemented a DR solution for Global Trust Bank in Hyderabad and recently we set up another DR site for the company in Mumbai.” GE Capital, which uses NetApp’s solution for DR has gone in for five DR sites with each one of the sites backing up the other.

Networked storage
T Srinivasan, the country manager for EMC India says, “80 percent of businesses are still on server attached storage. Therefore, the opportunity for networked storage is big.” EMC strategy and focus will be on storage management, business continuity and DR. HP’s Basu says, “Because of storage consolidation, we see growth in investment on high-end storage infrastructure. These include automated backup and SAN implementation.”

When data capacity increases, DAS will not be able to handle it. Given the exponential data growth, it is imperative for any company to gradually move away from direct access storage (DAS) to networked storage (NAS and SAN). IDC’s Mishra
says, “Unified storage sees concepts like NAS and SAN converging.”

The Movers & Shakers in the Storage Market
Disk storage
External storage

Storage management software
According to an IDC study done in 2001, 13 percent of data centre costs are dedicated to software, 29 percent to hardware and the remaining 48 percent is spent on labour. Thus, software costs are actually the smallest piece of the pie. By selecting the right software, companies spend a larger percentage on software, but less on hardware and labour. The advantage in doing so, is that the entire pie becomes smaller, so overall costs are actually reduced. “E-mail, video, digital imaging and audio information are contributing to a massive explosion in storage capacity. Applications like backup and restore will drive the storage management software market in India,” says Arun Rao, national manager for storage at Computer Associates. Vendors addressing this market include EMC, Legato, Veritas and Computer Associates.

As 80 percent of businesses are still on server attached storage, the opportunity for network storage is big, says T Srinivasan

Agendra Kumar, country manager for Veritas India says, “If you can make your disks stretch farther, you reduce hardware costs. Effective storage software lowers the cost of disks by allowing departments and applications to pool their storage resources.”

Lowering the cost of labour is the second value of software. Automating processes that previously required manpower means that it takes fewer specialists to keep a data centre up and running. Veritas offers management tools such as VERITAS SANPoint Control that automate those processes.

Vendors pin their hopes on iSCSI
Mishra of IDC India says, “Suitable interconnects such as SCSI, fibre channel and especially iSCSI, will ensure smooth data accessibility and availability.” In Inda, iSCSI is still a new concept, and it may take 18 months for actual deployments to kick off. Nevertheless the opportunity is there. According to Gartner, SAN will bring 49 percent while NAS 32 percent of revenue in Indian external disk storage in 2005. It projects the total market for storage in India to reach Rs 2,000 crore in 2003. A growth that seems quite realistic given the fact that SAN and NAS are growing at 60 to 80 percent respectively.

Since fibre channel-based SANs require big investments and have distance limitations, the industry is now looking at iSCSI to solve the problem. Anal K Jain, managing director for India & SAARC at Network Appliance Systems (India) says, “New installations of iSCSI will come from organisations that are using DAS. Using iSCSI, enterprises can do both file and block access over IP; this was not possible earlier. Enterprise customers need not invest separately for file and block access any longer.”

New installations of iSCSI will come from organisations that are using DAS, says Anal K Jain

Storage Area Networks today use fibre channel to connect disk arrays, switches and servers that are expensive to set-up. There are a number of advantages of using iSCSI for SAN. One is that fibre channel uses Host Bus Adopter for network interfaces, which is four times costly as a network interface card. iSCSI uses IP technology that is easily understood and widely deployed. The other advantage of using IP is that enterprises can connect at speeds up to 10 Gbps. Fibre channel cannot be used over long distances and is limited to 10 kilometres. Lastly, there is more trained manpower available on IP than on fibre.

Jain adds, “The future of enterprise storage is iSCSI over IP and it promises to bring the best of both worlds—SAN and NAS—to customers by leveraging their existing technology investments and giving them new life in a network-centric storage era.”

Networking vendors such as Cisco, Nortel, and 3Com have announced their plans to bring iSCSI products into the market. Pure storage vendors like Network Appliance have already announced products that support iSCSI. Jain says, “Our strategy will be to give free upgrades for iSCSI to our customers who are using FAS900 series and F800.”

Hitachi Data Systems (HDS) has similar plans. It has a collaborative agreement with Nishan Systems, a manufacturer of multi-protocol storage switches in the IP SAN fabric and SAN extension market. V Vivekanand, business development manager at HDS says, “We are planning to integrate iSCSI with our Lightling 9900V products in the next six months.”

Overall storage revenues are expected to grow marginally in 2003-04. BFSI, telecom and SMEs are expected to drive the Indian storage market. In secondary storage, DLT Super drives like Ultrium are picking up rapidly.

TRAILBLAZERS

Hitachi Data Systems
Many do not know that India's first SAN implementation was done by Hitachi Data Systems (HDS) for a national long distance (NLD) carrier, back in 1998. During that time HDS was operating out of Singapore. The company came to India through channels in April 2001. Its strategy was to focus on specific customers and it
initially focused on verticals like the IT services company, manufacturing, petrochemicals and banking. HDS works with partners like Apara, Tata Infotech and Lanbit and has an OEM relationship with HP and Sun. Sun is also its reseller partner for the Lightning 9900V range of products.

V Vivekanand, business development manager of HDS says, ”We have grown from a one member team to six members for support sales development. Our plan for 2003 is to add four more people to fuel the pre-sales and post sales support.” He adds that HDS’s focus has changed from addressing the infrastructure-storage sub-systems to storage management solutions like business continuance, rapid recovery solution and DR. Last year HDS created a separate division for services to bring out pre-packaged solution to customers.

HDS is bringing a basket of products and services to customers. One would be ‘SAN SLAs.’ Says Vivekanand, “End-customers are using range of products from different storage vendors and each of them have separate SLA. The cost of managing this SLA is high. We have seen one vendor blaming the other in case of any discrepancy. In this situation the customer’s business suffers. In this service we will manage the SLA for customers irrespective of the products they are using from several vendors.” Enablement-services are another offering from HDS, wherein it helps customers to explore and utilise the software to the fullest.

HDS has separated its offering into two categories—core infrastructure and edge storage solutions. Core infrastructure is for a centralised storage solution, where HDS will be using the Lightning 9900V range of products. This category currently contributes 85 percent of its total business. Edge storage solution is for distributed storage architecture using the Thunder 9500 products. The company says it will try to focus on gaining exposure for these solutions in 2003-04. Vivekanand says, ”We have a steady relationship with Sun Microsystems for core infrastructure solution. Therefore, our focus will be to get into the SME market. Using distributed storage, SMEs can store non-mission-critical data with Thunder 9500. The cost will be 50
percent cheaper than core products." To strengthen its channels for the SME market, HDS is looking at tying up with two distributors with system integration skills.

Currently HDS has five large projects that will be completed in March 2003 along with Sun Microsystems. HDS is expecting to increase its revenues by 80 percent in calendar year 2003 from the $14 million achieved in 2002. Currently, the revenue split from enterprise and SME stands at 70:30, but in CY 2003 this ratio should be 50:50.

HDS’s focus will be to get into the SME market. Using distributed storage, SMEs can store non-mission-critical data with Thunder 9500, says V Vivekanand

Network Appliance
Barely 10 months after setting up its Indian operations, NetApp has made remarkable progress. It has opened sales offices in Bangalore, Mumbai and Delhi and has increased its channel presence. Apara, Wipro, WeP and CMS are its channel partners in India. Its customers include Texas Instruments, GE Capital, Cisco, Intel, Motorola and Times Internet. Last year, the company won some big projects from ICICI Bank (NAS), Aviva, GE Capital and Kotak Mahindra. GE uses NetApp products for DR at five sites. NetApp is focusing on chip design, financial services and telecommunications verticals.

Between Q1 to Q3 of 2002, the company has moved up from third-rank to runner up behind HP, in the external storage market. The company reported $8 million revenues with a market share of 19.7 percent. NetApp’s products range from $3,000 to $ 20,000 for low-end products like F87, to sub $50,000 for 4-6 TB requirement (F825) to high-end products like FAS 960 for $ 1 million.

Anal K Jain, managing director for India & SAARC at Network Appliance Systems (India) says, “NetApp’s focus will be centred around unified storage. Customers want a single platform that can handle both SAN and NAS.” The company plans to spend Rs 1.5 crore to promote its unified storage solutions. NetApp’s strategy is to become the number one vendor within the next three years. Oil and gas is a new vertical and it has ONGC and Saudi Aramco as its customers.

NetApp is bullish about its new offering. Jain says, “We see iSCSI deployments in the first half of 2003, and it will take a bite out of fibre channel.” NetApp is offering iSCSI as a 2nd protocol for its F800 and FAS900 products.

NetApp’s focus will be centred around unified storage. Customers want a single platform that can handle both SAN and NAS, says Anal Jain

HP India
HP is the undisputed leader in both disk and external storage. It continues to focus on secondary storage market selling DLT Super Drive (Ultrium library). Avjit Basu says, “In the tape business where average selling price is falling, we see a demand for Ultrium tape drives. Since the price gap is narrowing, and the drives are getting faster, we saw the business from tape increasing. We are selling 50 to 60 Ultrium DLT Super Drives per month.” HP’s strong presence in the banking and telecom sector helped it garner a couple of big projects in 2002. It won a consolidation and DR project from BPCL.

Basu says, ”HP’s focus will be on business continuity and disaster recovery management that would need high availability, remote backup and disk arrays with features like no single point of failure and five nines uptime in SAN infrastructure." The other focus area of HP will be to offer its customers to move their DR site from one location to other locations. “We are helping Global Trust Bank to set up their DR sites in Hyderabad and Mumbai. We have deployed a number of SAN solutions using MS1000 that help customers to move from DAS to SAN.”

During 2003-04, HP will try to promote its Adaptive storage solution—managing storage across hardware and OS platforms. However, HP will continue to focus on the secondary storage market—TO/Ultrium and autoloaders, libraries.

During 2003-04, HP will try to promote its Adaptive storage solutions, managing storage across hardware and OS platforms, says Avijit Basu

New storage paradigms

  • DAS doesn’t scale
  • Islands of storage are hard and costly to manage
  • Move storage onto a network—SAN or NAS
iSCSI vs Fibre channel
iSCSI FC
One network to manage Two networks
IP card is cheaper FC card costs is high
No distance limitations Limited to 10 kms
High connecting speed Slow
Plenty of trained manpower Limited and expensive manpower
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