Monday, November 12, 2007

How a recession can affect your storage infrastructure

Many storage clients are worried about how they will manage increasing storage demands when their budgets get cut. This is a legitimate concern, because purchasing new equipment will get harder as Capital Expenditure budgets get pinched in a recession or by inflation.

"A Wall Street superstar this year who runs Balestra Capital Partners, Jim Melcher, says he's "worried about a recession. Not a normal one, but a very bad one. The worst since the 1930s. I expect we'll see clear signs of it in six months with a dramatic slowdown in the gross domestic product."

"Noting that consumption is already slowing, Mr. Melcher figures sharply rising unemployment is inevitable. Another of his worries is that central banks around the globe, America's included, are debasing their currencies, which is setting the stage for a new round of higher inflation."

Maintaining older equipment may pay for the time being, because of the leveling of processor speeds as seen in this WSJ article ,

"The great plateau has had a drastic effect on chip sales. There is less reason for computer users to replace their hardware and little reason for hardware companies to buy the most advanced chips, which are the most profitable for chip makers. "

Legacy NetApp users may actually be able to provide better database performance by keeping their older equipment running longer. The best example is the FAS980 customer who can keep adding 72 GB and 144 GB spindles all the way up to 674 disks, and save a bundle over a newer unit. If you are looking for a long term storage solution and your company is worried about the risks of inflation and recession, perhaps it is time to review your current storage infrastructure. The question to ask your storage vendor is how can you provide our company more storage with less money to invest?

Zerowait has some of these answers.

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