Smart Moves: Selling IP SANs to Fibre Channel Customers

However, IP SANs are a much greater opportunity to Fibre Channel VARs than a threat, because they are not Fibre Channel SAN replacements, but complements. The corporations keep Fibre Channel SANs in their data centers for high-end storage processing, and install IP SANs in remote offices to replace DAS (direct-attached storage). By installing IP SANs at remote offices, departments and workgroups, SAN customers can better utilize enterprise resources and improve distributed backup policies to protect critical data across the enterprise.

Market Opportunity
Fibre Channel SANs are firmly ensconced in the corporate data center and won't be replaced by another storage technology any time soon. So many IP SAN vendors are looking to the mid-tier and SME (small enterprise) space as natural customers, since compact and economical IP-based SANs are ideally suited to these environments. However, IP SAN vendors are finding a difficult adoption barrier: convincing these businesses that they need storage networking in the first place. This is not a significant barrier at large enterprises that already fun Fibre Channel SANs. These businesses already believe in the power of storage networking and distributed backup. Since these customers are already convinced, they are quicker to recognize the advantages of storage networking for their remote offices. But for all these advantages, installing and maintaining Fibre Channel SANs at multiple remote offices is too costly and time-consuming. The required capital, ongoing expense and management complexity are better suited for large corporate data centers and their staffs.

Enter the economical IP SAN. Installing these storage area networks at the remote office level represents an excellent business deal for the customers, who can leverage their Fibre Channel SANs, use storage networking throughout the enterprise, and enjoy IP SANs' lower cost and familiar administration. VARs benefit even though IP SANs bring in a lower margin than the more expensive Fibre Channel SANs, because the IP SANs represent a much higher volume and far less resource consumption. VARs and their customers can have the best of both worlds by retaining Fibre Channel SAN services and supplementing these high margin activities with lower margin, high volume IP SAN installations in remote offices, workgroups and departments. IP SANs are perfectly suited to these environments because of their excellent ROI on the local level, and their important role in distributed data protection across the enterprise.

ROI - Local and Enterprise
Fibre Channel SAN customers may be sold on the concept of storage networking's benefits, but they do need a compelling ROI (return on investment) to extend storage networking to remote offices. Good storage networking ROI happens at both the local and enterprise levels: IP SANs relieve storage administration chores and overburdened IT staffs at remote offices, and they also allow remote offices to integrate their data protection procedures with corporate's.

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Local offices often struggle with overloaded storage assets, overprovisioning, and overburdened storage staffs. Those resources all come out of the company pocket, contributing to a dip in the bottom line. Using IP SANs to consolidate and optimize storage assets, remote-office IT staff can significantly lower storage acquisition costs and on-going support needs. An IP SAN can aggregate data using a metadata model, virtualizing the storage network and presenting a common storage pool. This allows IT to hide complex physical data views under logical data views, which benefits end users and frees unused storage resources and disk space. Without provisioning tools, IT struggles to manage dispersed storage assets by tracking multiple versions of applications, data sets, operating systems and service packs. IP SANs show an immediate return on investment because they build on an IP knowledge base, leverage existing investments, and provision storage assets.