What Storage Managers Are BuyingStorage magazine Spring 2008 Purchasing

Intentions Survey

Rich CastagnaEditorial Director

Storage Media GroupTechTarget

About the survey…• E-mail surveys conducted in March 2008• Respondents had specific purchasing authority• Targets four areas: disk, network, backup & DR, storage

management software • Average company size: $2.0 billion annual revenue.

(Small: <$100M, Midsized: $100M - $1B, Large: >$1B)• Results based on 763 qualified respondents• All industries, led by Health/Medical (12%), Financial

(13%), Government (11%) and Manufacturing (11%)May 2008

Key findings…• Spending still up (slightly)—budgets rising at a rate

of about 3%• Capacity still biggest issue--average disk capacity

to be added this year way up• Drives for existing subsystems continue to be

biggest chunk of disk spend• More key apps on iSCSI storage as deployments

pick up• Tape spending continues downward trend• Increased interest in newer techs to

manage/control capacityMay 2008

Average storage budget: $3.2M

>$10M, 7.30%

$5.1 - 10M, 6.30%

$2.1 - 5M, 10.70%

Don't know, 9.90%

$1 - 2M, 16.20%

<$1M, 49.60%

Indicate your company’s 2008 storage budget

May 2008

Disk spending still takes biggest bite out of budgets

11 12 12

33 41 42 41 42 43 4440 40 41

1516 14 15 15 15 14

13 12 121514 15 14 14 14 14

13 13 121812 11 11 11 12

13 12 12 11 8 9 8 8 8 76 8 6 8 9 8 8 5 7 7

9109

8

2002 Mar-04 Aug-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08

%

Maintenance Fees Disk Hardware Storage SWStaff Storage Network HW MediaProfessional services

Percentage of 2008 storage budget allocated to the following

May 2008

New disk capacity plans up sharply, reversing last year’s slowdown

13 1520 20

2330

3740

37 38

47

101520253035404550

Mar-03

Oct-03

Mar-04

Aug-04

Mar-05

Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

TB

How much storage do you expect your company to purchase this year?

Average of all users

May 2008

Disk subsystems

Low-end disk systems losing favor as midrange heats up

23 26 24 22 20 25

38 38 43 40 42 42 3946

33 33 31 31 30 32 3626

5 4 4 3 4 4 5 3

24 24

Sep-04

Mar-05

Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

%

High-end Midrange Low-end Other

What percentage of your 2008 disk subsystem purchases fall into each category?

May 2008

Trend of building out existing storage systems continues

0

10

20

30

40

50

60

Sep 06 Mar 07 Sep 07 Mar 08New FC SAN New NASDrives for Existing Systems New SAN/NAS HybridsNew DAS New iSCSI

May 2008

File storage: DAS still favored over NAS filers, gateways

6%

15%

20%

29%

9%

21%

0% 10% 20% 30%

Other

Clustered file system

File Virtualization

NAS gateways to SAN

NAS filers

DAS file servers

Which best describes your plans for file storage?

May 2008

Top 7 leaders stay the same, not much change with smaller players

IBM

HDS

Apple

Fujitsu

Xiotec

h

Pillar D

ata

Isilon

SGIPan

asas

EMC

HP

DellNetA

pp

Sun

Adapte

c

EqualL

ogic

Compe

llent

Nexsan

3Par

BlueArc

LeftH

and

Exane

t

Procom

0

5

10

15

20

25

30

35

40

45

50

Spring 2008

Who have you purchased disk subsystems from or intend to purchase from in 2008?

May 2008

Mindshare: EMC widens lead over HP, IBM/NetApp pass Dell

EMC

HP

IBM

NetApp

Dell

HDS

SunEqu

alLogic

Compell

ent

Fujitsu

Xiotech

3Par

Pillar D

ata

0

5

10

15

20

25

30

Primary Vendor in '08

%

Who will be your primary disk subsystem vendor for 2008?

May 2008

Big biz likes EMC, SMBs favor HP & Dell, NetApp picks up across the board

0

5

10

15

20

25

30

35

40

Big Biz Mid-Sized Biz Small Biz

EMC IBM NetApp HP HDS Dell

Who will be your primary vendor for disk subsystems in 2008?

May 2008

In 2007, tech support and price became bigger factorsWhat is the main factor in your choice of primary storage vendor?

Financial Stability

Other

Market Leader

Price

Tech Support & Service

Supply Other Tech to

Company

Features & Functions

0 5 10 15 20 25 30 35

Percent of Responses

Fall 2007

May 2008

For 2008, features still top factor, market position

gainsWhat is the main factor in your choice of

primary storage vendor?

Financial Stability

Other

Market Leader

Price

Tech Support & Service

Supply Other Tech to

Company

Features & Functions

0 5 10 15 20 25 30 35

Percent of Responses

Spring 08

May 2008

Storage networking

Number of SANs flat, big biz consolidation may be looming

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08

Number of Fabrics

Small Mid Large

How many SAN fabrics do you have?

Spring 2008: overall average of 3.0 SAN fabrics

May 2008

Dec-08

Big, mid-sized companies continue move to directors

• Average number of switches installed: 15—and plan to add nearly 6

• Overall, 31% have director-based fabrics—up from 27% last fall

• 56% of big companies have director-based networks—up from 47% a year ago

• Mid-sized companies also shifting to directors—31% expect to be there by end of ‘08

May 2008

Brocade and Cisco still neck and neck for switch market mindshare

4238 37

32 3135

33

44

3840

18 1721 22

2420

222124

21

2831 30

33

4042

44

24 3 4 4 3 3 3 4 4

0

5

10

15

20

25

30

35

40

45

50

2003 Mar-04 Aug-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08

%

Brocade McData Cisco Qlogic

Who will be your primary storage switch vendor in 2008?

May 2008

40% have deployed/will deploy iSCSI in 2008, strong SMB interest

76

68

65

62

66

54

16

19

26

27

21

28

8

13

9

11

13

18

Fall 06

Spring 08

Fall 06

Spring 08

Fall 06

Spring 08

No Yes, with sw driver Yes, with TOE cards

Have you deployed, or will you deploy iSCSI in 2007?

May 2008

Small

Mid-Size

Big

More critical apps and email running on iSCSI

What applications will you put on your iSCSI SANs?

0% 10% 20% 30% 40% 50% 60% 70%

End-User Storage

Non-Mission Critical Apps

Backup

E-Mail

Mission Critical Apps

Other

May 2008

Why users are opting for iSCSI…

Other

Need low-cost capacity

Performance okay for apps

Have TCP/IP expertise

Part of backup infrastructure

Adding a new storage tier

Cheaper than FC storage

0% 5% 10% 15% 20% 25% 30% 35% 40%

Primary reason for deploying iSCSI storage in 2008

May 2008

Some users still cool to iSCSI, but performance, reliability seem okay

Other

Security concerns

Reliability issues

Performance concerns

LAN can’t support it

Don’t need more storage

0% 5% 10% 15% 20% 25% 30%

Spring 08

Primary reason for NOT deploying iSCSI storage in 2008

May 2008

WAN spending remains flat, little change over last year

46

44

49

40

36

36

25

25

24

24

28

27

18

19

17

24

24

24

8

9

7

6

8

7

3

3

3

6

4

6

'Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

Increase Stay the same No plans Decrease Don't know

Describe your spending plans for extending your storage network over the wide area

May 2008

Wide-area network spending decline is across the board

• 36% will increase wide area spending (down from 49% a year ago)

• 52% say DR is driving wide area purchases (down from 67% a year ago)

• 28% will connect data centers (down from 40% last fall)

• 25% will buy more or faster long-distance communications lines (down from 45%)

• 13% say they’ll buy WAFS (18% last fall)• Interest in WAN accelerators holds (23% vs.

22% last fall)May 2008

Backup and disaster recovery

Tape spending plans continue to decline—lowest levels recorded

56 33 1238 43 20

31 49 2139 43 18

48 35 1640 38 21

47 34 1833 41 2435 38 25

29 41 28

2003Mar-04Aug-04Mar-05Sep-05Mar-06Sep-06Mar-07Sep-07Mar-08

Increase No change Decrease

How will your use of tape change ?

May 2008

Tape purchasing plans down across all company sizes

• Big companies • 29% plan to cut tape spending (vs. 26% last fall)• 41% will increase tape spending (vs. 54% a year and

a half ago)• Mid-sized companies

• 29% will decrease tape spending (vs. 19% last spring)

• 34% will increase tape spending (vs. 41% last fall)• Small companies

• 22% will increase spending vs. 28% last fall

May 2008

Tape spending dropping and tape libraries getting smaller

Average number of slots in tape libraries you have purchased/will purchase in 2008?

May 2008

0%

10%

20%

30%

40%

Spring06

Fall 06 Spring07

Fall 07 Spring08

Less than 20 20 to 100 101 to 300 More than 300

D2D backup plans steady…Slight increases, but no jump linked to sagging tape plans

51 20 25 3

53 23 22 2

54 24 18 4

55 24 18 3

58 21 18 3

57 22 16 5

53 27 16 4

51 29 17 3

55 26 16 3

Mar-04Aug-04Mar-05

Sep-05Mar-06Sep-06Mar-07Sep-07Mar-08

Increase Stay the same No plans Decrease

Describe your plans for disk-to-disk backup spending

May 2008

Disk most favored for staging backups, VTL losing favor

0 10 20 30 40 50 60

Disk as file system

VTL

WORM disk

Single instance

CDP

None

%

Spring 07Spring 08

Which disk-to-disk backup strategies are you using?

May 2008

Interest in dedupe continues to grow, nearly half will increase 2008 spending

31% 27% 37% 5%

34% 28% 35% 4%

44% 23% 32% 1%Spring 08

Fall 07

Spring 07

Increase Stay the same No plans Decrease

In 2008, your spending for deduplication products probably will…

May 2008

EMC builds on its lead, smaller D2D vendors gain some ground

IBMSymantec/Revivio

DataDomainSun

Quantum/ADICSepaton

FalconStor

Diligient

Dell

EMC/Avamar

HP

NetApp

Overland

NexsanAdaptec

None

0% 5% 10% 15% 20% 25%

Who is your main disk backup vendor?

Represents respondents increasing or maintaining D2D backup spendingMay 2008

Data Domain moves into top five

Planned spending for DR holds steady, still strong

53

52

51

54

47

49

44

40

37

35

29

38

34

39

5

6

8

7

7

10

12

3

2

1

3

2

3

1

Mar-05

Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

Increase Stay the same None Decrease Don't know

Spending plans for DR products and services in 2007

May 2008

Off-site tape and replication key areas of DR spending

0% 10% 20% 30% 40% 50%

Other

Online vaulting

Remotecopy/ replication

Off-site tape

Mar-08Sep-07Mar-07

Primary storage-related expenditure for DR in 2008

May 2008

Disaster recovery still prime mover for wide-area spending

2621

24

10

29

44

0

10

20

30

40

50

60

DR plan Connectdata

centers

Automatebackup

Connectbranches

Compliance Other

%

Mar-07Sep-07Mar-08

What is driving your wide-area storage network purchases?

May 2008

Anticipated compliance spending falls back to 4-year

low

43

44

35

41

33

45

27

31

31

29

18

18

22

23

22

20

26

19

33

1

0

0

1

1

1

1

1

0

0

0

0

6

4

8

7

8

5

36

41

43

39

27

30

43

37

Mar-04

Aug-04

Mar-05

Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

Increase Stay the same None Decrease Don't Know

Purchase plans to comply with data retention laws

March 2008

File system, email archivers still tops, modest plans for ‘08

What types of data archiving products are you currently using/plan to purchase in 2007?

File system

E-mail

Database

Other app-specific

Other

None

Currently Using Plan to PurchaseMay 2008

Tape encryption not gaining any ground—data still at risk

0

10

20

30

40

50

60

70

None Backup app’sencryption

Array-basedsecurity

Securityapplicances

Drive-levelencryption

Spring 07 Fall 07 Spring 08

Have you deployed storage security?

May 2008

Storage management software

Most biding time on management apps, “increase/maintain” at all time low

0 10 20 30 40 50 60 70 80 90 100

2002Mar-03Aug-03Mar-04Aug-04Mar-05Sep-05Mar-06Sep-06Mar-07Sep-07Mar-08

Increase Stay the same Decrease None

Purchase plans for storage management software

May 2008

Storage grows, staff doesn’t—looking for help from management apps

• 41% want to manage more storage with same staff (vs. 37% last fall) & 8% need to manage storage with less staff

• 23% use what comes with hardware• 34% have all management software

they need• Money matters -- 22% lack budget for

more software, 7% say it costs too much

May 2008

Interest in capacity related tools, others just “nice to have”

86

83

82

78

56

51

100

90

89

90

88

72

65

100SRM

Provisioning

Config mgmt

Ops mgmt

Performance mgmt

ILM

Compliance

Mar-08 Mar-07

Rank these storage management functions in order of importance

Rankings based on an index where SRM=100May 2008

Hardware vendors favored for management apps

IBM

None

AkorriBoca

da

OnaroFal

conStor

Tek-T

ools

Finisa

r

Softek

Compe

llent

Contin

uity

DataCore

EMC

Veritas

HP

NetApp

HDS

Sun

CA

Serverg

raph

0

5

10

15

20

25

30

35

40Who have you purchased from or intend to purchase from in 2008?

May 08

Features, current vendors and SMI-S key to purchase decisions • 31% say features/functions most important for

choosing management software vendor• 59%: SMI-S compliance is very or somewhat

important—up from last spring’s 45%• What the heck is SMI-S? 32% still not sure• 27% say EMC will be prime vendor in 2008,

12% say HP and 12% give Symantec the nod• Smaller storage management players still

looking to gain momentumMay 2008

Interest in virtualization, but purchase plans still modest

Describe your purchase plans for storage virtualization

May 2008

None

Software/ switch

Software/ standalone

server

Software/host

Software/array

Appliance

Will evaluate this year

0 10 20 30 40 50 60 70

More than 50% say they have virtualized at least some of their storage…

What’s hot—top ten techs users paln to implement/evaluate in 2008

0% 10% 20% 30% 40% 50% 60% 70%

SAN/ NAS gateways

Wide-area replication

Change mgmnt S/ W

SLAs for business units

Shared/ global file systems

Data encryption

Data deduplication

Multi-protocol arrays

SAN routing

File virtualization

Implement EvaluateMay 2008

Closing thoughts…• Tough economy tips budgets down a little)…• …but capacity looks like it’s taking off again• Storage managers building out existing

arrays…• …and taking a look at less costly iSCSI

storage• iSCSI confidence up, and purchase plans on

the rise too• Dedupe is hot—tape is not• The “Year of Storage Virtualization” … maybe

next year

May 2008

Thank you…

Rich Castagna Editorial Director, Storage Media GroupTechTargetrcastagna@techtarget.com