Adoption of Unified Storage

ESG recently conducted a survey[2] of 306 IT professionals with in-depth knowledge about their organization’s current and planned data storage strategies at North American enterprise (i.e., 1,000 or more employees) and midmarket (i.e., 100 to 999 employees) organizations with sizeable storage environments.[3] As part of this research, respondents were asked about their organization’s plans to implement unified storage technology. While nearly one-quarter (23%) of organizations have already started to consolidate NAS and SAN storage resources, an additional 47% have plans to do so (see Figure 1).

So, how far has the needle moved on unified storage adoption? ESG last asked about unified storage plans as part of a survey of enterprise organizations in late 2008 when less than one in five respondents had deployed a consolidated storage architecture. As shown in Table 1, there has been a notable increase in unified storage usage over the last two years, with more than one-quarter (26%) of the 2010 enterprise respondents leveraging integrated file- and block-based storage technology.

Why the uptick in usage? Unified storage can increase operational efficiency by providing a single shared pool of storage that can be used on an as-needed basis, eliminating the need to deploy, power, cool, and manage separate block- and file-based arrays. This simple reduction in the number of systems to deploy can go a long way in reducing not only operational costs, but also capital expenditure in the form of deferred equipment purchases. As such, it is not surprising that the survey results show that organizations with a greater number of discrete storage systems are further down the road to adopting a unified storage. Figure 2 clearly shows this correlation between plans for unified storage and the number of total discrete storage systems deployed. In fact, respondents with more than 100 storage systems are almost twice as likely to be engaged in a NAS/SAN integration initiative when compared to their counterparts with less than 25 systems (32% vs. 17%, respectively).

By eliminating specialized block or file stovepipes and providing the aforementioned pool of shared storage resources that can be used by multiple applications, it also follows that there is a strong link between unified storage adoption and satisfaction with storage hardware utilization rates. Specifically, nearly 90% of organizations currently using unified storage are mostly or completely satisfied with their current storage utilization rates compared to only 77% of those not yet using unified storage (see Figure 3). Perhaps more significantly, early adopters of unified storage were more than two times as likely as non-adopters (30% vs. 12%, respectively) to classify their storage hardware utilization rates as “optimal.”

Unified Storage Deployment Alternatives

Users have options when it comes to deploying unified storage, and there are certainly business cases that can be made for both:

• Unified NAS/SAN storage systems:  These are integrated systems that support both block and file data. While they don’t offer the attraction of allowing users to tap into existing SAN assets (i.e., these are new systems that need to be purchased), they do allow for a reduction in the number of systems under management over time.
• NAS gateways: These devices attach via SAN to block storage that is shared with other applications.  Gateways allow users to leverage existing block storage investments to support file data by adding a “file personality” to the front-end. However, the downside is that the SAN-attached block storage and the gateway device are distinct components that need to be managed separately.

ESG’s research indicates that there isn’t a strong preference for either approach, with 30% of those surveyed using or planning to use unified systems, 32% using or planning to use NAS gateways, and 35% using or planning to use both approaches (see Figure 4). ESG expects to see the continued trend of users taking both approaches to unify their storage environments since they must contend with properly integrating new systems into existing environments depending on the situation (e.g., type of application, size of existing SAN infrastructure, etc.). Looking at the data from the perspective of company size reveals a connection between the number of employees an organization has and its subsequent approach to unified storage. Likely driven by budgetary constraints and refresh cycles, large enterprises are much more liable to deploy unified systems while midmarket organizations have a greater propensity to leverage the more economical gateway approach (see Figure 5).

The Bigger Truth

Storage administrators have long contended with provisioning storage resources separately for block (SAN) and file (NAS) data and the many resultant challenges including poor capacity utilization and the proliferation of disparate systems requiring management. It should come as no surprise, then, that nearly 70% of IT organizations are current or planned users of unified storage according to ESG research, and those respondents with a greater number of discrete storage systems are much more likely to have deployed the technology already. Furthermore, the organizations that have already implemented unified storage have a higher satisfaction level with their overall storage hardware utilization rates.

In addition to optimizing storage infrastructure investments in light of continuing data growth and the ongoing need to reduce operational costs, unified storage can also help IT organizations accelerate infrastructure consolidation and resource optimization—both of which are crucial components to future visions of dynamic, highly-virtualized, and/or private cloud computing environments. And while users may not have standardized on a single deployment methodology at this point, ESG’s research clearly finds that unified storage is going to become more common going forward.

[2] Source: ESG Research Report, Scale-out Storage Market Trends, December 2010.

[3] In order to qualify for the survey, organizations had to have at least 50 TB of external disk-based storage capacity. ]]> http://www.enterprisestrategygroup.com/2011/05/esg-research-brief-unified-storage-trends/feed/ 0 http://www.enterprisestrategygroup.com/2011/03/esg-research-brief-integrated-computing-trends/ http://www.enterprisestrategygroup.com/2011/03/esg-research-brief-integrated-computing-trends/#comments Thu, 17 Mar 2011 18:38:32 +0000 ryamashita http://www.enterprisestrategygroup.com/?p=21267 Comprised of server, storage, networking, and management components, integrated computing platforms offer an appealing alternative to traditional technology infrastructure deployments. Touting benefits such as simplified management and faster provisioning, these platforms have garnered significant levels of interest, especially among organizations with increasingly large and complex IT environments. And while adoption of integrated computing technology has been relatively tempered to date, ESG research reveals that 2011 will likely see an uptick in the number of organizations committing IT budget to the purchase of these solutions.

Integrated Computing Adoption and 2011 Spending Plans

ESG recently conducted a survey of 611 IT professionals[1] at midmarket (i.e., 100 to 999 employees) and enterprise (i.e., 1,000 or more employees) organizations in North America and Western Europe to gauge 2011 IT spending plans. As part of the research, respondents were asked about their organization’s usage of or interest in integrated computing technology, defined as platforms in which servers, storage, network connectivity, and (in some cases) software are combined in a single solution. Although only 10% of organizations have already deployed integrated computing platforms, two-thirds expressed some level of interest in the technology (see Figure 1). Enterprise organizations were almost twice as likely as their midmarket counterparts to indicate existing integrated computing implementations (13% vs. 7%).

While only 10% of respondent organizations are current users of integrated computing solutions, more than one-quarter (28%) revealed intentions to invest in the technology in 2011 (see Figure 2). Size matters, however, when it comes to 2011 integrated computing spending plans, with nearly one-third (31%) of enterprise-class organizations expecting to purchase integrated computing platform solutions this year compared to 23% of midmarket firms.

This data becomes more meaningful when analyzed based on the scope of IT infrastructure—specifically, server and storage hardware—already deployed. While it is generally unlikely that organizations with significant technology implementations will “rip-and-replace” existing assets with integrated computing platforms on a wholesale basis, it may be that it is these users dealing with the largest, most complex infrastructures that are most attracted to the ease of management an integrated solution might offer. In addition, it would not be surprising for these organizations to use integrated computing solutions in an additive and/or augmentative manner. It follows, then, that there is a direct correlation between the likelihood of making integrated computing platform investments in 2011 and both the amount of storage capacity under management and number of production servers. Table 1 reveals that 47% of organizations with at least 100 TB of storage capacity will purchase an integrated computing solution this year compared to only 27% of those with less than 25 TB; similarly, 48% of organizations with more than 100 production servers will purchase an integrated computing solution in 2011 as opposed to 17% of those with fewer than 25 production servers.

Benefits of Integrated Computing

So what benefits—whether actual (i.e., current users) or perceived (i.e., potential adopters)—are associated with integrated computing platforms? According to Figure 3, simplified management, reduced deployment times, and a better economic model top the list as users enjoy ease of management (44%), faster deployment times (37%), improved TCO (35%), and less time required for hardware and software integration (33%). Respondents also envision benefits associated with interoperability issues, application performance, and service and support.

The fact that more than half (51%) of current integrated computing users will make additional investments in integrated computing this year compared to only 36% of potential adopters suggests that the technology works as advertised. In that vein, Table 2 reveals some of the key differences between the perceptions and realities of integrated computing platforms—i.e., the expected benefits of planned adopters versus the tangible benefits experienced by current users.

Integrated Computing Concerns

All respondents were asked about any trepidation their organizations might have about deploying integrated computing platforms, regardless of interest level in the technology. While almost every respondent expressed at least one concern, clearly reliance on a single vendor is top of mind for many organizations. In particular, nearly one-third (31%) are afraid that it will be difficult and/or costly to replace a solution once it is installed (i.e., vendor lock-in) and another 23% fear conceding too much control to one vendor (see Figure 4). Cost is another potential barrier to the adoption of integrated computing platforms, with 27% of respondents labeling the systems as too expensive and 24% citing the investment that their organization has made in its current IT infrastructure.

The Bigger Truth

While few—if any—organizations will rip-and-replace their existing server, networking, and storage infrastructure in favor of integrated computing technology, these platforms are garnering interest among IT professionals. By offering such key benefits as ease of management and faster resource provisioning, it is not surprising that larger organizations, which often have expansive and complex IT environments supported by stove-piped infrastructure teams, have expressed more interest in these solutions to date. In fact, ESG research shows that not only are more enterprise organizations currently using integrated computing platforms, but they are also more likely to be allocating IT budget toward 2011 purchases, especially those with significant server and storage footprints. ESG believes that integrated computing adoption will also be propelled by the ongoing use of server virtualization. Why? By minimizing the interaction—whether for interoperability testing or technology integration—required between disparate IT groups, integrated computing solutions can help to ensure that infrastructure deployment is not a bottleneck to application roll-outs—a key consideration in today’s more highly-virtualized environments.

There are, on the other hand, challenges—both real and perceived—that vendors selling integrated computing solutions will have to overcome in order to attain wider market acceptance. Vendor “lock-in” and control are concerns among both enterprise and midmarket respondents, which can potentially be minimized by demonstrating non-disruptive data migration paths to alternative infrastructure options. Cost is also a roadblock at this point, but this objection is much more likely to come from midmarket respondents. However, based on the fact that these smaller organizations typically have fewer resources to integrate the disparate components of the infrastructure stack, conventional wisdom would suggest that they would be ideal candidates for integrated computing technology adoption and will likely do so once prices decline. As such, ESG expects volume vendors to target the market with more cost-effective solutions over the next 12 to 18 months, which will serve to accelerate overall adoption and drive increased interest, particularly among smaller organizations.

Database Applications are a Top Challenge for Virtualization Platforms

ESG recently conducted a survey of 463 IT professionals with in-depth knowledge about their organization’s current and planned server virtualization implementations and strategies.[2] As part of the research, respondents with business application responsibilities were asked to identify the types of applications their organizations are currently having the most difficulty running in a virtual server environment. As displayed in Figure 1, 45 out of 145—or nearly one-third (31%)—of the organizations surveyed report that ERP and other financial applications are the most challenging to deploy on virtual machines. Other top responses included databases, e-mail, CRM, industry-specific applications, and business intelligence.

Many of ESG’s survey respondents actually named the specific applications that have proven to be less than ideal candidates for virtualization (see Figure 2).

What makes these applications more difficult to deploy on virtualized infrastructure? The most common challenges encountered by users include:

• IO performance bottlenecks in virtual environments: It is no secret that IO performance bottlenecks have been a consistent shortcoming of virtualized server resources. As such, it is not surprising that the most popular enterprise application vendors in the market—Oracle and SAP—earned the top two spots since many of the applications they deliver have underlying transactional databases with high random IO demands. Business intelligence applications like IBM Cognos and reporting applications running on Oracle, DB2, and SQL Server databases with high sequential IO and throughput requirements were also cited.
• Maintaining persistency in multi-tier architectures: Front- and back-office applications such as those most frequently cited by ESG’s respondents are commonly deployed in a multi-tier architecture, typically comprised of a database server, an application and/or web server, and client (either thick or web-based). Maintaining persistency during failover of each component is further complicated when each tier is virtualized.
• Inconsistent hypervisor support from database vendors: In addition to performance and persistence issues, organizations that have deployed server virtualization platforms for their Intel-based servers will also have to contend with the fact that some database vendors only officially support their own or a limited number of virtualization platforms.

It is worth noting that achieving more pervasive usage of these applications on virtualized infrastructure is also a top priority for server virtualization software vendors. However, the challenges listed above will have to be addressed before this can become a reality.

Application Virtualization Workarounds

While users wait for vendors to resolve the aforementioned issues, they will be left to investigate alternative deployment models in the short term. These deployment options include:

• Multiple virtualization platforms on premises: This would involve deploying virtualization technology based on the support model of each application vendor, potentially resulting in disparate virtualization platforms running applications in a stove-piped manner.
• Single virtualization platform on premises: In this model, an organization standardizes on a single virtualization platform, regardless of its interoperability and/or support status from individual application vendors.
• Partial virtualization on premises: Organizations would deploy as much of the application stack on a single virtualization platform, leaving the balance to run on raw physical systems.
• Off-premises deployment: By leveraging a software-as-a-service (SaaS) option, IT organizations could offload virtualization issues to a third-party with expertise in these deployments.

Each option has its pros and cons (see Table 1).

The Bigger Truth

As evidenced by ESG research, there are significant challenges associated with deploying complex database applications on virtualized server infrastructure. Based on the fact that increasing the use of virtualization will continue to be a top IT priority for many IT organizations over the next 12-18 months,[4] at some point the migration of IO-intensive applications and/or their underlying databases to virtual platforms will become less of an option and more of a necessity despite the issues and barriers discussed in this brief.

Organizations that choose to deploy best-of-breed technology in an application stack (i.e., storage, database, application server, etc.) may need to adopt a multi-vendor virtualization strategy if they want to virtualize their entire data center, which may introduce operational complexity that could potentially mitigate the benefits virtualization offers. However, selecting application technology based on which virtualization platform the database vendor supports or is certified on may not be the most optimal strategy either. Tradeoffs will likely need to be made for functionality and efficiency versus platform support.

When evaluating virtualization platforms for the purposes of support or certification, software application vendors will need to consider their target customer, market dynamics, and the influence of database vendors.

• Database vendors, namely Oracle, IBM (DB2), SAP (Sybase), and Microsoft (SQL Server), have an advantage in influencing buying decisions because the database server is critical to the overall application performance. Adding a virtualization layer opens up the concern for performance degradation and the risk of missing SLAs. Database vendors that tune their solutions to run optimally in a virtualized environment will be successful in influencing DBAs and application owners.
• Mainstream database vendors have a strong development community that gives DBAs an effective support base to quickly solve database performance issues on a supported stack, raw or virtualized. If a customer’s technology stack is not supported, problem resolution becomes a major bottleneck and introduces risk DBAs may not want to take.
• Vendors in a position to offer their application solutions in a vertically integrated stack, such as Oracle and SAP, will have the most success in persuading customers to use a particular virtualization platform. For these reasons, pure-play virtualization companies will need to become more than just virtualization specialists in order to win consumers’ mindshare in database application deployments. This will include injecting themselves early on in the application lifecycle and winning over developers and DBAs.
• Organizations that choose to deploy a single vendor virtualization platform across the data center will realize significant benefits, but will also need to weigh the risk and cost of taking on support for applications running on an unsupported virtualized platform.
• Alternative deployment options such as software-as-a-service (SaaS) offer customers the choice to move application deployment and support off premises. In this case, the choice of virtualization platform will be removed from the customer’s plate and left up to the service provider, who may or may not have an easier decision to make.

[2] Ibid.

[3] Source: ESG Research Brief, The IT Labor Dynamic: A Leading Indicator of Services Opportunities?, January 2011.

[4] Source: ESG Research Report, 2011 IT Spending Intentions Survey, January 2011. ]]> http://www.enterprisestrategygroup.com/2011/03/esg-research-brief-application-virtualization-challenges/feed/ 2 http://www.enterprisestrategygroup.com/2011/02/esg-research-brief-2011-professional-services-spending-trends/ http://www.enterprisestrategygroup.com/2011/02/esg-research-brief-2011-professional-services-spending-trends/#comments Wed, 23 Feb 2011 19:33:24 +0000 Jeff Hine http://www.enterprisestrategygroup.com/?p=20830 ESG’s 2011 IT spending intentions survey reveals that it may be an unpredictable and lumpy year for IT professional services providers. While less than one-third of organizations will increase spending levels for professional services in 2011, there will be plenty of targeted opportunities for third-party services firms. “Focus” on the right industries, customers, and technology segments will be the key theme for 2011.

2011 Professional Services Spending Trends

ESG’s 2011 IT Spending Intentions Survey reveals that professional services is once again at the bottom of the list in terms of technology-related spending plans among private- and public-sector organizations.[1] Less than one-third (29%) of respondents expect to increase professional services spending in 2011, compared to 36% in 2010 (see Figure 1). Additionally, 31% of organizations indicate that they will decrease spending on professional services and another 40% expecting to maintain 2010’s already reduced budget levels.

What kind of relationship exists between IT hiring plans and the fluctuation of professional services spending? Though conventional wisdom might suggest that organizations with plans to add new IT staff positions would be less reliant on the help of third-party firms, Figure 2 says otherwise. Specifically, organizations that are adding IT headcount in 2011 are more than five times as likely to be increasing professional services spending than those reducing current staff levels (52% vs. 9%). Conversely, nearly two-thirds (65%) of organizations with plans to eliminate IT staff positions expect to spend less on professional services compared to 2010. This suggests a general pattern of IT investment among customers—i.e., if organizations are increasing their investments in IT spending, they are likely to do so across new infrastructure, new staff, and new services offerings that offer consulting, implementation, and operational assistance for new IT initiatives.

Based on this correlation between IT staffing plans and professional services spending, which types of organizations might make the best candidates for consulting services in 2011? Since midmarket respondents are significantly more likely to be increasing or maintaining IT headcount over the next twelve months,[2] it may be the year for services firms to shift more focus to smaller shops. This is further supported by the fact that smaller organizations—whether measured by number of employees or total 2011 IT budget—are more likely than enterprise-class firms to report plans to increase or maintain spending levels for professional services (see Table 1).

Professional Services Spending Outlook by Industry and Organizational Profile

In terms of increased professional services spending, the top industries for 2011 will be business services, federal government, and retail (see Figure 3). Service spending in the retail sector may very well be driven by the need to support new business intelligence application deployments and other initiatives related to effectively managing “big data.” While information security was the top business initiative, IT priority, and means of IT investment justification for the federal government agencies surveyed by ESG, more than half of respondents within this vertical cite security as an area in which they have a shortage of skills, opening the door for either training or staff augmentation opportunities.

ESG also found that the manner in which an organization typically purchases IT products and services is a strong predictor of increased professional services budgets. Specifically, respondents that classify their organizations as “leading-edge” consumers of IT products and services are far more likely to have plans for increased professional services spending in 2011 than are those with more conservative IT purchasing habits (see Table 2). Since leading-edge IT organizations often deal with new technologies, it makes sense that they would enlist the help of professional services firms to provide training and, in some cases, even bridge the knowledge gap while IT staffs get up to speed.

Technology Projects for which Professional Services Will Be Leveraged in 2011

So for which types of projects will third-party professional service firms be leveraged in 2011? As shown in Figure 4, more than three-quarters (76%) of organizations surveyed by ESG say they will engage with an IT professional services firm for some purpose over the next twelve months. As was the case in 2010, respondents are most likely to engage IT professional services firms for security audits (cited by 18% of overall respondents), while new application deployments will foster the need for both implementation services (16%) and training (14%). Cloud computing is also clearly on the minds of survey respondents, with “cloud computing assessment/strategy” being the sixth-most popular service engagement for which respondents have plans in 2011. When analyzed by company size, the only services in which enterprise organizations are significantly more likely to invest than their midmarket counterparts involve staff augmentation and cloud computing.

Analyzing professional services priorities by company size based on total IT budget rather than number of employees yields similar results. Figure 5 reveals that the percentage of organizations with an annual IT budget of less than $5 million with no plans to utilize professional services (33%) is nearly triple that of those spending $50 million or more (12%).  In terms of specific plans, organizations with the largest IT budgets were significantly more likely to leverage professional services and consulting firms in areas such as staff augmentation, regulatory compliance audits, cloud computing assessments, and data center projects. Based on the fact that many larger organizations in ESG’s survey had plans to reduce IT headcount in 2011 and/or identified a lack of IT skills, it is not surprising to see these firms looking to outside providers for staff augmentation services. It also follows that larger firms are more likely to have regulatory compliance requirements and would be more likely to have data center consolidation efforts underway compared to smaller organizations with a simpler data center infrastructure.

The Bigger Truth

As cost-cutting initiatives continue to subside, customers are once again engaging in projects that involve business process improvement and new application deployments, so this will be a year of focus for professional services firms. According to ESG’s data, organizations with labor shortages in specific technology areas will plug these holes with the assistance of third-party experts. Organizations that are hiring and growing, on the other hand, will likely seek out training and educational services, application implementation and integration, and infrastructure management assessment and strategy services.  For example, the need to roll out sophisticated applications that crunch “big data”—as well as the deployment of underlying infrastructure components like server and storage hardware—will drive service engagements in certain industries, such as retail.

Security audits remain the most frequently referenced project-related service driven by trends in virtualization, cloud computing, and shortages of skills. Issues around multi-tenancy as well as public and private cloud compute models will lead customers to take a much harder look at the security of their networks and the privacy of their data, as will increasing regulatory scrutiny. ESG sees IT organizations increasingly putting more formal processes in place around the auditing of external technology providers to ensure they are not exposing their networks to additional risk, a trend that will continue to provide opportunities for professional services firms. While there will be numerous occasions to provide a wide variety of services over the course of 2011, it is still vital for firms to be prudent in terms of where they invest time and resources by targeting the right areas.

[2] Source: ESG Research Brief, The IT Labor Dynamic: A Leading Indicator of Services Opportunities, January 2011. ]]> http://www.enterprisestrategygroup.com/2011/02/esg-research-brief-2011-professional-services-spending-trends/feed/ 1