|Last week, I was in Austin, and had dinner at [Rudy's Country Store and BBQ]. They offer their self-proclaimed "Worst BBQ in Austin!" with brisket, sausage and other meats by weight. I got a beer, some potato salad, and creamed corn, all at additional cost, of course. When I went to the cashier to pay, I was offered all the white bread I wanted at no additional charge. Are you kidding me? You are going to charge me for beer, but give me 8 to 12 complimentary slices of white bread (practically half a loaf)? Honestly, I consider bread and beer to be basically the same functional food item, differing only in solid versus liquid form. I chose to have only four slices. The food was awesome!|
I am reminded of that from my latest exchange with EMC.It didn't take long after IBM's announcement yesterday of IBM's continued investment in its strategic product set, IBM System Storage DS8000 series, that competitors responded. In particular, fellow blogger BarryB from EMC has a post [DS8000 Finally Gets Thin Provisioning] that pokes fun at the new Thin Provisioning feature.
Interestingly, the attack is not on the technical implementation, which is straightforward and rock-solid, but rather that the feature is charged at a flat rate of $69,000 US dollars (list price) per disk array. BarryB claims that recently EMC Corporate has decided to reduce the price of their own thin provisioning, called Symmetrix Virtual Provisioning (VP) on select subset of models of their storage portfolio, although I have not found an EMC press release to confirm. In other words, EMC will bury the cost of thin provisioning into the total cost for new sales, and stop
shafting, er.. over-charging their existing Symmetrix customers that are interesting in licensing this feature.
BarryB claims this was a lucky coincidence that his blog post happened just days before IBM's announcement.
(Update: While the timing appears suspicious, I am not accusing Mr. Burke in anywrongdoing of insider information of IBM's plans, nor am I aware of any investigations on this matter from the SEC or any other government agency, and apologize if my previous attempt at humor suggested otherwise. BarryB claimsthat the reduction in price was motivated to counter publicly announced HDS's "Switch In On" program, that it is not a secret thatEMC reduced VP pricing weeks ago, effective beginning 3Q09, just not widely advertised in any formal EMC press releases.Perhaps this new VP pricing was only disclosed to just EMC's existing Symmetrix customers, Business Partners, and employees. Perhaps EMC's decision not to announce this in a Press Release was to avoid upsetting all the EMC CLARiiON customers that continue to pay for Thin Provisioning, or to avoid a long line of existing VP customers asking for refunds. In any case, people are innocent until proven otherwise, and BarryB rightfully deserves the presumption of innocence in this regard. I'm sorry, BarryB, for any trouble my previous comments may have caused you.)Instead, let's explore some events over the past year that have led up to this.
Let's start with what EMC previously charged for this feature. Software features like this often follow a common pricing method, based per TB, so larger configurations pay more, but tiered in a manner that larger configurations pay less per TB, combined with a yearly maintenance cost.
(Updated: EMC has asked me nicely not to post their actual list prices,so I will provide rough estimates instead. According to BarryB, these are no longer the current prices, soI present them as historical figures for comparison purposes only.)
|TBs Licensed ||150||100||25|
|Initial List price||$190,000||$160,000||$60,000|
| || || || |
|Software Maintenance (SWMA) percentage||15%||15%||15%|
|Software Maintenance per year||$30,000||$25,000||$9000|
|Number of years||4 years||4 years||4 years|
| || || || |
|Software License Cost (4 years)||$310,000||$260,000||$96,000|
Holy cow! How did EMC get away charging so much for this? To be fair, these are often deeply discounted, a practice common among the industry. However, it was easy for IBMers to show EMC customers that putting SVC or N series gateways in front of their existing EMC disks was more cost effective. Both SVC and N series, as well as IBM's XIV, provide thin provisioning at no additional charge.
HDS offers their own thin provisioning called Hitachi Dynamic Provisioning.Hitachi also offers an SVC-like capability to virtualize storage behind the USP-V. However, I suspect thatfewer than 10 percent of their install base actually licensed this capability because it cost so much. Under the cost pressure from IBM's thin provisioning capabilities in SVC, XIV and N series, Hitachi launched its ["Switch It On"] marketing campaign to activate virtualization and provide some features at no additional charge, including the first 10TB of Hitachi Dynamic Provisioning.
Last week, Martin Glassborow on his StorageBod blog, argued that EMC and HDS should[Set the Wide Stripes Free]. Here is an excerpt:
HDS and EMC are both extremely guilty in this regard, both Virtual Provisioning and Dynamic Provisioning cost me extra as an end-user to license. But this is the technology upon which all future block-based storage arrays will be built. If you guys want to improve the TCO and show that you are serious about reducing the complexity to manage your arrays, you will license for free. You will encourage the end-user to break free from the shackles of complexity and you will improve the image of Tier-1 storage in the enterprise.
Martin is using the term "free" in two contexts above. In the Linux community, we are careful to clarify "free, as in free speech" or "free, as in free beer". Technically, EMC's virtual provisioning is neither, as one has to purchase the hardware to get the feature, so the term "at no additional charge" is more legally correct.
However, the discussion of "free beer" brings me back to my first paragraph about Rudy's BBQ. Nearly everyone eats bread, with the exception of those with [Celiac Disease] that causesan intolerance for gluten protein in wheat, so burying the cost of white bread in the base cost of the BBQ meat is reasonable. In contrast, not everyone drinks beer, and there are probably several people whowould complain if the cost of beer was included in the cost of the BBQ meat, so charging separately forbeer makes business sense.
The same applies in the storage industry. When all (or most) customers of a product can benefit from a feature, it makes sense to include it at no additional charge. When a significant subset might not want to pay a higher base price because they won't use or benefit from a feature, it makes sense to make it optionally priced.
- For the IBM SVC, XIV and N series, all customers can benefit from thin provisioning, so it is included at no additional charge.
- For the IBM System Storage DS8000, perhaps some 30 to 40 percent of our clients have only System z and/or System i servers attached, and therefore would not benefit from this new thin provisioning. It may seem unfair to raise the price on everybody. The $69,000 flat rate was competitively priced against the prices EMC, HDS and 3PAR were charging for similar capability, and lower than the cost to add a new SVC cluster in front of the DS8000. IBM also charges an annual maintenance, but far lower than what others charged as well.
(Note: These list prices are approximate, and vary slightly based on whether you are on legacy, ESA, Servicesuite or ServiceElect software and subscription (S&S) service plans, and the machine type/model. The tables were too complicated to include here in this post, so these numbers are rounded for comparison purposes only.)
|TBs Licensed ||150||100||25|
|IBM flat rate||$69,000||$69,000||$69,000|
| || || || |
|Software Maintenance per year (approx)||$2,000||$2,000||$2,000|
|Number of years||4 years||4 years||4 years|
| || || || |
|Software License Cost (4 years)||$77,000||$77,000||$77,000|
Pricing is more art than science. Getting the right pricing structure that appears fair to everyone involved can be a complicated process.
technorati tags: IBM, Austin, BBQ, thin provisioning, EMC, Virtual Provisioning, SEC, SVC, XIV, N series, Martin Glassborow, HDS, Hitachi, Dynamic Provisioning, System z, System i, DS8000[Read More]
Well, it's Tuesday, and you know what that means? IBM announcements!
Today we had several for the IBM System Storage product line. Here are some of them:
- DS8000 gets thinner, leaner and faster
The 4.3 level of microcode for the IBM System Storage DS8000 series disk systems [announced enhancements] for both fixed block architecture (FBA) LUNs and count key data (CKD) volumes.
For FBA LUNs that attach to Linux, UNIX and Windows distributed systems, IBM announced DS8000 Thin Provisioning native support. Of course, many people already had this by putting IBM System Storage SAN Volume Controller (SVC) in front, but now DS8000 clients out there without SVC can also achieve benefits ofthin provisioning. This support also improves quick initialization a whopping 2.6 times faster.
For CKD volumes attached to z/OS on System z mainframes, IBM announced zHPF multitrack support for z/OS 1.9 and above. zHPF provide high performance FICON performance, and can now handle multitrack I/O transfers foreven better performance for zFS, HFS, PDSE, and extended striped data sets.
- XIV gets better connected
A lot of XIV[announced enhancements] and preview announcements centered around better connectivity. Here's a run down:
- Better host attachment connectivity by beefing up the interface modules that hold the FCP and iSCSI interface cards. XIV disk arrays have 3 to 6 of these in different configurations, and since they manage both their own disks,as well as receive host I/O requests for other disks, are basically doing double-duty.These interface modules can now be ordered as [Dual-CPU] modules.
- Better infrastructure management by connecting XIV with the industry standard SMI-S interface to IBM Tivoli Storage Productivity Center. Now, XIV can be part of the single pane of glass console that manages all of your other disk arrays, tape libraries and SAN fabrics.
- Better copy services for backups by connecting XIV with IBM Tivoli Storage Manager Advanced Copy Services. TSM for Advanced Copy Services is application aware and can coordinate XIV Snapshots similar to its current support for SVC and DS8000 FlashCopy capabilities.
- Better connectivity to security systems by supporting LDAP credentials. Before, you had individual userid and passwords for each XIV, and these were probably different than all the other userid/password combinations you have for every other box on your data center floor. IBM is working on getting all products to support theLightweight Directory Access Protocol, or [LDAP] so that we can reach the nirvana of "single sign-on",one userid/password per administrator for all IT devices in the company.
- Better support with flexible warranty periods and non-disruptive code load options.
- Better remote copy support by connecting to sites far, far away. IBM previewed that it will provideasynchronous disk mirroring from one XIV to another XIV natively. Before this, XIV's synchronous mirroring was limited to 300km distances. Many of our clients do long distance global mirroring of their XIV today behind an SVC, but again, for those out there that don't yet have an SVC, this can be a reasonable alternative.
- TS7650 ProtecTIER data deduplication appliance now offers "no dedupe" option
|In what some might consider a surprising move, IBM announced a "no dedupe" licensing option on their premiere deduplication solution, which somewhat reminds me of IBM's NOCOPY option on DS8000 FlashCopy. At first I thought "Are you kidding me?!?!" However, this new license option allows the TS7650 appliance to compete with other virtual tape libraries (VTL) that do not offer deduplication capability on an even playing field. It also allows TS7650 to be used for data that doesn'tdedupe very well, such as seismic recordings, satellite images, or what have you. There are also clients who do not yet feel comfortable to dedupe their financial records for compliance reasons.This option now allows IBM to withdraw from marketing the TS7530 non-dedupe library. Having one technology thatdoes both dedupe and no-dedupe is better than offering two separate libraries based on different technologies.|
The ProtecTIER series also announced [IP remote distance replication]. This can be used to replicate virtualtape cartridges in one ProtecTIER over to another ProtecTIER at a remote location. You can decide to replicateall or just a subset of your virtual tapes, and this feature can be used to migrate, merge or split ProtecTIERconfigurations as your needs grow. Before this support, our TS7650G clients replicated the disk repositoryusing native disk array replication technology, such as Global Mirror on the DS8000, but that meant that all data was replicated over to the secondary site. Now, with this new IP replication feature, you can be selective, and replicate only those virtual tapes that are mission critical.
The appliance now supports up to 36TB of disk capacity, and the new "IBM i" operating system on System i servers,formerly known as i5/OS.
- GPFS does Windows
IBM's General Parallel File System (GPFS) has the lion's marketshare of file systems used in the [Top 500 Supercomputers]. For a while, it was limited to just Linux and AIX operating system support, but version 3.3 [extends this to Windows 2008 on 64-bit architectures]. GPFS isthe file system used in IBM's Scale-Out File Services, the underlying technology of IBM's Cloud Computing and Storage offerings.
To learn more, here is the IBM[Press Release] and[Webcast].
technorati tags: IBM, DS8000, thin provisioning, Linux, UNIX, Windows, zHPF, z/OS, XIV, SMI-S, asynchronous mirroring, TSM, LDAP, SVC, TS7650, deduplication, dedupe, replication, GPFS, supercomputers, cloud computing, cloud storage, burning man
I mentioned last April about [IBM conferences to consider] that the list of speakers had not yet been finalized. Well, It's official! My topics were selected and I will be presenting at the [IBM System Storage and Storage Networking Symposium] in Chicago, IL, on July 27-31, 2009.
In addition to keynote speakers Curtis Tearte, General Manager for IBM System Storage, and Clod Barrera, Chief Technical Strategist, my colleague Jack Arnold and I from the [IBM Tucson Executive Briefing Center] will present four topics each.
To sign up for this annual event, see the [Registration Page].
technorati tags: IBM, conference, symposium, storage networking, Jack Arnold, Curtis Tearte, Clod Barrera
Now that the frozen economy is starting to thaw, I have been traveling like crazy this month. So far, I have been to Rochester, MN, Los Angeles and San Diego, CA, and now currently in Austin, TX. On the plus side, I was able to enjoy the [Fourth of July
] holiday weekend on the beaches of San Diego.
(If you have not been to California beaches lately, here's a quick [video] reminder)
So the big news this week is that the auction over Data Domain is over, and EMC's bid finally won over NetApp. Both NetApp and EMC have data deduplication capabilities in their existing product lines, but neither could compete against IBM's TS7650G ProtecTIER Data Deduplication gateway and TS7650 ProtecTIER appliances, and so were hell-bent to buy Data Domain for large amounts. The final price agreed upon was over two billion US dollars for Data Domain.
For the most part, Data Domain's products are targeted towards small and medium sized businesses, whereas IBM's TS7650 and TS7650G products targets medium and larger sized enterprises.So now that EMC has a viable data deduplication solution, it looks like it will be yet another IBM-vs-EMC debate going forward.
technorati tags: IBM, TS7650G, TS7650, deduplication, ProtecTIER, NetApp, EMC, Data Domain, Audrina Patridge, Teriyaki burger