At a recent summit, Amazon stated that increased agility is the number one reason businesses are considering cloud services. Amazon used the following slide to summarize the benefits of the cloud resource model:
This is the complete opposite of what most businesses achieve when they buy or lease IT infrastructure. Using storage as an example, let’s run through this model:
- “Acquire Resources On Demand” – No! Businesses usually make large storage purchases every 3-5 years. They buy capacity up front and select a solution they think (or hope) will meet their needs in the future. This leads to wasted resources and lock-in.
- “Release Resources When No Longer Needed” – Unfortunately not. Once bought or leased, it’s yours – for the next 3 to 5 years.
- “Pay For What You Use” – Again, no! Buying storage means committing up front to a fixed capacity and configuration. It’s the same with leasing. The only difference is leasing allows you to pay over time.
- “Turn Fixed Costs Into Variable” – Not when you purchase. Not when you lease. A lease involves fixed monthly payments over a period of time and is typically treated as a balance sheet asset.
How Is Nimble Storage on Demand Delivering Against the Odds?
Enterprises are looking to achieve the agility and benefits of the cloud. We now make it even more compelling for enterprises and service providers to build their environments with Nimble Storage.
Nimble Storage on Demand, introduced today, is a true utility-based, on-premise storage subscription service that delivers the agility that customers demand. Here is how it works:
- There are four service levels: Platinum, Gold, Silver and Bronze. Each is priced in cents per GB per month (¢/GB/month).
- The customer signs up for a minimum of 40TB.
- We ship equipment to the customer at our cost with enough performance and capacity to meet their needs plus at least 10% extra buffer capacity.
- We use InfoSight™, our cloud-based management and support engine, to monitor actual usage, and every month we send the customer a bill based on peak usage from the month before.
- We also use InfoSight to determine when more capacity or performance is needed to meet the desired service level and to achieve at least 10% buffer capacity. When we ship more capacity or performance, it is at our cost.
- The customer’s capacity can go up or down at any time, and we only bill for what’s actually used.
- There is only a 12-month commit, and after that the customer can go month-to-month or even cancel the service.
If we compare this to Amazon’s cloud benefit list, Nimble Storage on Demand checks all the boxes!
More than 300 cloud service providers – and many more enterprises – are already using Nimble Storage to build innovative cloud environments. The reason? Nimble Storage’s Adaptive Flash and the way it helps enterprises, service providers and SaaS vendors achieve significant cost and datacenter footprint savings while delivering a system that dynamically allocates performance and capacity for the changing needs of cloud infrastructure.
Tune into Storage Field Day this Friday to hear details on the pricing model, as well as hands-on demos for our new integration with OpenStack that was also announced today.