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Appendix

This appendix briefly outlines how SRM can influence cost avoidance in storage-related purchases. It is very simplified and uses Scenario 1 (Corporation W) as a working model. For the calculations in this scenario, disk storage, and resource-hour costs to support a storage infrastructure are estimated as follows:

  • Disk storage is a fully burdened cost, including: the maintenance, backup, physical plant resources, and supporting hardware. The cost in this scenario is $0.30 per Mbyte.

  • Fully loaded cost of a system-storage administrator is $100 per hour.

Furthermore, we assume that costs related to the purchase and implementation of an SRM system are factored into the cost-avoidance calculations for this scenario.

In this scenario, plans for storage capacity are based on high-level estimates of historical capacity expansions for enterprise storage at 100% annually. Based on the SRM data from the storage discovery and capacity planning phases, the goals for the next year are significantly changed from a 100% increase in capacity to a more accurate 48% increase. This adjustment reduces expansion by 42%.

TABLE 8 SRM Cost Avoidance Table

Item

Estimated Costs Without SRM

Estimated Costs With SRM

Disk

12 Tbytes *0.03 = $3,600,000.00

6 Tbytes *0.30 = $1,800,000.00

SRM

No associated costs

SRM system = $500,000.00

SRM implementation

No associated costs

Resource hours = $10,000.00

Total project costs

$3,600,000.00

$2,310,000.00

 

 

 

Costs avoided through SRM

$1,290,000.00

 


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