While storage hardware prices are dropping considerably, Intelligent Business Research Services (IBRS) in Australia released a report last week saying that the low hardware cost conceals a higher management cost.
According to IDC numbers, the price per gigabyte dropped from US$15.24 in 2004, to US$9.81 in 2005. The price drop of 35% comes as a reaction to the need for larger storage farms.
Dave Rosenberg, sales and marketing manager for Datastor, says most storage vendors know about the falling hardware prices, but that it is harder to determine the strategy for management pricing.
“This has been happening for some time and everyone knows about it. It is whether the strategy can be delivered on that is the question.”
The IBRS report advises organisations investing in storage to consider all the costs involved, including the services and software licensing.
While the price of storage continues to drop, advances in hardware have seen the first 750GB hard disk from Seagate, possibly opening up for a 1TB drive later this year.
Rosenberg says it is now up to the organisations to consider all the costs involved. This includes the often-overlooked price of storage management.
“They will have to consider the management of the whole thing, not just the price of the hardware.”