The Total Economic Impact Of The Dell EMC All-Flash .
A Forrester Total Economic Impact Study Commissioned By Dell EMCSeptember 2017The Total EconomicImpact Of The DellEMC All-Flash StoragePortfolioImproved Performance And CostEfficiency Enabled By The Dell EMC AllFlash Storage Portfolio
Table Of ContentsExecutive Summary1Key Findings2Financial Summary5TEI Framework And Methodology6The Dell EMC All-Flash Storage Portfolio Customer Journey7Interviewed Organizations7Composite Organization7Key Challenges And Objectives8Key Results9Financial Analysis10Increased IT Resource Productivity10Increased Business Productivity12Storage Hardware And Ongoing Maintenance Savings14Power And Cooling Savings15Flexibility15Dell EMC All-Flash Storage Costs16Labor And Ongoing Management Costs17Dell EMC All-Flash: OverviewAppendix A: Total Economic Impact1920ABOUT FORRESTER CONSULTINGProject Director:Anish G. ShahSeptember 2017Forrester Consulting provides independent and objective research-basedconsulting to help leaders succeed in their organizations. Ranging in scope from ashort strategy session to custom projects, Forrester’s Consulting services connectyou directly with research analysts who apply expert insight to your specificbusiness challenges. For more information, visit forrester.com/consulting. 2017, Forrester Research, Inc. All rights reserved. Unauthorized reproductionis strictly prohibited. Information is based on best available resources.Opinions reflect judgment at the time and are subject to change. Forrester ,Technographics , Forrester Wave, RoleView, TechRadar, and Total EconomicImpact are trademarks of Forrester Research, Inc. All other trademarks are theproperty of their respective companies. For additional information, go toforrester.com.
Executive SummaryBenefits And Costs99.999% mission-criticalapplication availability,improving businessproductivity90% reduction inapplication performancerelated help desk tickets“We started having an array ofunplanned outages, includingtwo major outages to our ERPand financial systems, which wecould not afford as a business.With Dell EMC All-Flashstorage, we have had no majoroutages, and we have muchmore flexibility to manage ourdata storage needs.”— Server storage architecture,oil and gasDell EMC All-Flash storage portfolio provides a range of end-to-endstorage solutions allowing customers to reduce cost, improve speed, andincrease agility. As companies look to transform their IT organizations,they keep a critical eye to key performance indicators of a moderninfrastructure including reduced costs, improvement in performance, andincreased agility. Dell EMC All-Flash storage solutions help companiesmeet these objectives and offer a variety of best-in-class features thatprovide organizations the ability to quickly scale capacity with datacompression, deduplication, and thin provisioning and help improveperformance without sacrificing performance. Dell EMC commissionedForrester Consulting to conduct a Total Economic Impact (TEI) studyand examine the potential return on investment (ROI) enterprises mayrealize by deploying Dell EMC All-Flash storage. The purpose of this studyis to provide readers with a framework to evaluate the potential financialimpact of Dell EMC All-Flash storage solutions on their organizations. Tobetter understand the investment benefits, costs, and risks, Forresterinterviewed four current customers who have deployed Dell EMC All-Flashstorage solutions in their organizations.Prior to using Dell EMC All-Flash storage, the interviewed customers usedtraditional disk storage exclusively, which posed many challenges to dealwith the growth of data in the new digital economy. The growth providedscalability challenges, performance issues, and increased burden oninternal IT teams to quickly add and manage capacity. Storageadministrators had to also deal with the acceleration of virtualization oftheir IT infrastructure environment and address the security, performance,and management challenges that resulted. In addition, the proliferation ofthe amount of unstructured data required organizations to quickly addstorage capacity that often meant buying additional hardware and led tohigher capital expenditures, license costs, and the need to hire additionalresources to help deploy and manage the increased storage footprint.Organizations realized that they needed a cost-efficient storage solutionthat could scale with the enterprise to help align with their businessobjectives.By implementing Dell EMC All-Flash storage solutions, the interviewedorganizations could transition to a more modern IT infrastructure and havethe flexibility to customize their storage requirements based on Dell EMC’sbest-of-breed All-Flash storage options. Organizations required a smallernumber of servers and devices to meet their performance and availabilityrequirements and needs, and storage administrators could managesignificantly more of data. They also realized improvements in latencies,which allowed organizations to run capabilities like compression anddeduplication without impacting performance. A director of server storagearchitecture of an oil and gas company noted, “We started having an arrayof unplanned outages, including two major outages to our enterpriseresource planning (ERP) and financial systems, which we could not affordas a business. With Dell EMC All-Flash storage, we have had no majoroutages, and we have much more flexibility to manage our data storageneeds.”1 The Total Economic Impact Of The Dell EMC All-Flash Storage Portfolio
ROI126%Key FindingsQuantified benefits. The interviewed organization experienced thefollowing risk-adjusted quantified benefits:›Increased IT productivity by improved applicationperformance, resulting in over 600,000 of benefits. Theinterviewed organizations experienced a 90% reduction in helpdesk tickets regarding issues with application performance anddowntime. Prior to deploying Dell EMC All-Flash storage, IT teamsat interviewed organizations were managing and resolving up to30 help desk tickets a month due to application outages orperformance issues. This put a lot of stress on the IT teams andrequired 12 hours of manpower on average to resolve each issue.With Dell EMC All-Flash storage, interviewed organizations havenot experienced any large-scale outages, and applicationperformance-related issues have significantly reduced. In addition,traditional disk storage appliance required many IT manhours toimplement, deploy, and then manage on an ongoing basis.Storage administrators could now replace servers without long,drawn-out data migrations, and they could take advantage ofincreased automation related to data provisioning, applicationtiering, and workload management. This has resulted in nearly 325IT manhours per month of productivity gains for the interviewedorganizations.›Increased end user productivity by improved applicationperformance, resulting in 2.7 million of benefits. One-third ofthe interviewed organizations’ employees rely on mission-criticalapplications daily to conduct their business activity. Theseapplications are linked to an employee’s productivity and achievingbusiness success. An outage or performance issue with theseapplication workloads has a direct impact into the organization’stop line and the organization’s ability to service its customers. Priorto moving key applications and workloads onto Dell EMC All-Flashstorage solutions, the interviewed organizations frequently hadissues with their business-critical applications that affected thebusiness’ performances of their regular duties. After implementingthe Dell All-Flash storage solutions, interviewed organizations arenow realizing 99.999% availability of these mission-criticalapplications, which directly improves end user productivity.Benefits PV 4.2 millionNPV 2.3 millionPayback11 months2 The Total Economic Impact Of The Dell EMC All-Flash Storage Portfolio
›Storage hardware and ongoing management savings,resulting in 770,000 of benefits. Interviewed organizationsnoted that, with Dell EMC All-Flash storage, they can store asignificantly greater amount of data than with their previoustraditional disk storage environments. In addition, organizations’needs to move to an increased virtualization required lowerlatency of All-Flash as well as a significant improvement in servercapacity utilization. Organizations could now support theseincreased virtualized workloads and realize higher applicationperformance with reduced server needs. The freed-up servercapacity and the avoidance to purchase additional storagehardware and servers result in significant capex savings. Inaddition, reduced server requirements resulted in reducedsoftware license and annual maintenance costs, which led toannual opex savings.›Power and cooling savings, resulting in 152,000 of benefits.Dell EMC All-Flash storage allowed interviewed organizations toreduce their power and cooling costs by 85% because of reducedserver and rack space requirements.Other benefits. The interviewed organization experienced the followingbenefits, which are not quantified for this study:“Dell EMC All-Flash storagesolution is versatile like aswiss army knife. They have afull suite of best-of-breedproducts that provideorganizations the flexibility tomeet their data storagerequirements. They alloworganizations to customizeand choose across best-ofbreed solutions to meet theirneeds.”›Faster application deployment. Due to greater input/output persecond (IOPS) and lower latency, interviewed organizationsimproved deployment speeds from months to days when theymoved to Dell All-Flash storage.›Improved ability to scale. All-Flash storage enabled theorganization to easily increase and decrease storage capacity withminimal advanced planning.›Reduced need of specialized IT resources. The solutions couldbe managed by general IT resources and did not requirespecialized skill sets as needed in their previous solutions.Total PV Benefits (Three-Year) 2.7MInfrastructure architect, largeeducation system 772.2K 609.1K 152.2K90% reduction inapplication outages,performance, andlatency issues resultsin ncreased ITproductivity99.999% applicationavilablity results inincreased end userproductivity3 The Total Economic Impact Of The Dell EMC All-Flash Storage PortfolioStorage hardware andongoing maintenancesavings85% Reduction inpower and coolingcosts
Costs. The interviewed organizations experienced the following riskadjusted costs:›Dell EMC All-Flash storage costs of 1.7 million. Interviewedorganizations transitioned about 1 petabyte of data onto DellEMC’s All-Flash storage portfolio. The organizations invested inthree separate Dell EMC solutions (Dell EMC Unity, Dell EMCVMAX, and Dell EMC XtremIO) to meet their storage needs. Thisresulted in both an initial investment to transition to an all-flasharray but also a yearly maintenance cost.›Costs of internal labor resources during assessment,implementation, and ongoing management of 192,000.Internal FTEs are required to deploy, manage, and administer DellEMC All-Flash Storage that will cost an organization about 192,000 over three years.Forrester’s interview with four existing customers and subsequent financialanalysis, using a discount rate of 10%, found that a compositeorganization based on the interviewed organizations will experiencepresent value (PV) benefits of 4,192,179 over three years versus PVcosts of 1,850,981, adding up to a net present value (NPV) of 2,341,198and an ROI of 126%.4 The Total Economic Impact Of The Dell EMC All-Flash Storage Portfolio
Financial SummaryCONSOLIDATED FOUR-YEAR RISK-ADJUSTED METRICSThe financial results calculated in theBenefits and Costs sections can beused to determine the ROI, NPV, andpayback period for the interviewedorganization’s investment. Forresterassumes a yearly discount rate of10% for this analysis.Cash Flow Chart (Risk-Adjusted)Financial Analysis (risk-adjusted) 4,000,000 3,000,000Cash flows 2,000,000 1,000,000These risk-adjusted ROI,NPV, and payback periodvalues are determined byapplying risk-adjustmentfactors to the unadjustedresults in each Benefit andCost section. 0( 1,000,000)( 2,000,000)InitialTotal costsYear 1Total benefitsYear 2Year 3Cumulative net benefitsCash Flow Table (Risk-Adjusted)INITIALYEAR 1YEAR 2YEAR 3TOTALPRESENTVALUETotal costs( 1,363,098)( 196,185)( 196,185)( 196,185)( 1,951,653)( 1,850,981)Total benefits 0 1,685,737 1,685,737 1,685,737 5,057,211 4,192,179Net benefits( 1,363,098) 1,489,552 1,489,552 1,489,552 3,105,558 2,341,198ROI126%Payback period11 months5 The Total Economic Impact Of The Dell EMC All-Flash Storage Portfolio
TEI Framework And MethodologyFrom the information provided in the interview, Forrester has constructed aTotal Economic Impact (TEI) framework for those organizationsconsidering implementing the Dell EMC All-Flash storage solutions.The objective of the framework is to identify the cost, benefit, flexibility, andrisk factors that affect the investment decision. Forrester took a multistepapproach to evaluate the impact that the Dell EMC All-Flash storagesolutions can have on an organization:The TEI methodologyhelps companiesdemonstrate, justify, andrealize the tangible valueof IT initiatives to bothsenior management andother key businessstakeholders.DUE DILIGENCEInterviewed Dell EMC stakeholders and Forrester analysts to gather datarelative to All-Flash storage.CUSTOMER INTERVIEWInterviewed four organizations using Dell EMC All-Flash storage to obtaindata with respect to costs, benefits, and risks.COMPOSITE ORGANIZATIONDesigned a composite organization based on characteristics of theinterviewed organizations.FINANCIAL MODEL FRAMEWORKConstructed a financial model representative of the interview using theTEI methodology and risk-adjusted the financial model based on issuesand concerns of the interviewed organization.CASE STUDYEmployed four fundamental elements of TEI in modeling the Dell EMC AllFlash storage solutions’ impact: benefits, costs, flexibility, and risks. Giventhe increasing sophistication that enterprises have regarding ROIanalyses related to IT investments, Forrester’s TEI methodology serves toprovide a complete picture of the total economic impact of purchasedecisions. Please see Appendix A for additional information on the TEImethodology.DISCLOSURESReaders should be aware of the following:This study is commissioned by Dell EMC and delivered by ForresterConsulting. It is not meant to be used as a competitive analysis.Forrester makes no assumptions as to the potential ROI that otherorganizations will receive. Forrester strongly advises that readers use their ownestimates within the framework provided in the report to determine theappropriateness of an investment in the Dell EMC All-Flash storage solution.Dell EMC reviewed and provided feedback to Forrester, but Forrester maintainseditorial control over the study and its findings and does not accept changes tothe study that contradict Forrester’s findings or obscure the meaning of thestudy.Dell EMC provided the customer names for the interviews but did notparticipate in the interviews.6 The Total Economic Impact Of The Dell EMC All-Flash Storage Portfolio
The Dell EMC All-Flash Storage PortfolioCustomer JourneyBEFORE AND AFTER THE ALL-FLASH STORAGE INVESTMENTInterviewed OrganizationsOrganizations of all types benefit from the Dell EMC All-Flash storagesolutions, including healthcare, education, oil and gas, and consultingcompanies looking to improve application performance and runtime,agility, and scale quickly to meet their customer demands.For this study, Forrester conducted four interviews with Dell EMCcustomers who had deployed a combination of All-Flash arrays into theirenvironments. Interviewed customers include the following:INDUSTRYTOTAL STORAGE CAPACITYUNDER MANAGEMENTHEADQUARTERSEMPLOYEESOil and gasUnited States7,5004.5 petabytes total capacity;2.5 petabytes on Dell EMC All-FlashHealthcare systemUnited States23,0002 petabytes total capacity.100 TBs on Dell EMC All-FlashIT consultingCanada100Partner and customer for Dell ECM AllFlashEducation systemUnited States5,000 faculty and staff25,000 students3 petabytes total capacity.1.5 petabytes on Dell EMC All-FlashComposite OrganizationBased on customer interviews with four existing Dell EMCcustomers, Forrester constructed a composite organization thathighlights the financial benefits, costs, and associated ROIexperienced from implementing the Dell EMC All-Flash storagesolutions. The organization is representative of the customersForrester interviewed and is used to present the aggregate financialanalysis in the next section. The organization that Forrestersynthesized from interviews has the following characteristics:› A US-based organization with 10,000 employees.› Three petabytes of total storage under management.› One petabyte of storage transitioned on Dell EMC All-Flash storageproducts based to match their consumption needs.› Four storage administrators.› Three thousand total applications.The organization has transitioned applications, databases, andworkloads onto three Dell EMC All-Flash products:7 The Total Economic Impact Of The Dell EMC All-Flash Storage PortfolioKey assumptions10,000 employees3 petabytes of totalstorage1 petabyte of storagetransition to All-Flasharrays
300 TB of data onto Dell EMC Unity All-Flash. The organizationtransitioned many of its mid-tier portfolios and arrays including securityand reporting applications onto Dell EMC Unity All-Flash to simplifyoperations and reduce costs.600 TB of data onto Dell EMC VMAX All Flash. The organizationtransitioned mission-critical applications including ERP, SQL Serverenvironment, Oracle database HR, Payroll, and Purchasing onto DellEMC VMAX All-Flash.100 TB of data onto Dell EMC XtremIO. The organization transitionedkey tier one applications onto Dell EMC XtremIO to improveperformance, reduce latency, and realize increased storage efficiencieswith deduplication, compression, and thin provisioning features.Key Challenges And ObjectivesThe performance requirements of the organization’s virtualizationplatforms, cloud computing, and enterprise applications are rapidlyincreasing, which has led data center and storage administrators tomodernize their storage environments from spinning hard drives to flashbased storage.After a review process of evaluating several vendors, the organizationselected the Dell EMC All-Flash storage portfolio, as it believes Dell EMCcan satisfy its following business challenges, goals, and objectives:“Without a doubt, moving toDell EMC All-Flash has beengreat investment for us as wehave been able to consolidateour multiple and fragmented ITorganizations into a morenimble, flexible organizationthat can react to ourcustomers faster and moreefficiently provide solutions tomeet their needs.”Direct enterprise architecture,healthcare company› Improve application performance and runtime.› Ensure 99.999% availability of all its mission-critical applications.› Best-of-breed solution offering to meet their unique consumption model(end-to-end offering).› Gain real-time access to data to support faster and better businessdecision making.› Improve storage capacity to scale with business demands and align with“Dell EMC Unity is the perfectAll-Flash storage solution forus to meet both our cost andperformance goals. Thearchitecture is simple so wecould manage theimplementation in-housewithout any outside support.”the organization’s IT modernization and virtualization strategy.› Realize capex savings with lower server requirements.› Realize Opex savings through labor, power and cooling, andproductivity.8 The Total Economic Impact Of The Dell EMC All-Flash Storage PortfolioPartner, IT consulting company
Key ResultsThe organization revealed that key results from the All-Flash storageinvestment include:Improved application performance and optimized cost structure.The organization could reduce the unacceptably high
Dell EMC All-Flash storage portfolio provides a range of end-to-end storage solutions allowing customers to reduce cost, improve speed, and . Dell EMC VMAX, and Dell EMC XtremIO) to meet their storage needs. This resulted in both an initial investment to transition to an all-flash array but also a yearly maintenance cost.
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