Dell promises 10 p.c cost reduction in data storage

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Dell promises 10 p.c cost reduction in data storage

Says saving in IT budget differs from country to country and organization to organization

CMN Correspondent

Thursday, October 29, 2009

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NEW DELHI, INDIA: With eye on escalating maintenance cost and increase in complexity of data storage management, Dell's global data management consulting practices claims to have come out with a new strategy that would bring down the cost by 10 per cent.

"We have come out with management rapid insight (MRI) approaches through which we can quickly asses the pain points and provide solution to an enterprise. It will be a mix of managerial and technology inputs through which an enterprise will be able to save cost by 10 per cent," said Paul Kaeley, director of Global Storage (Data Management) Consulting Practice, Dell Inc.

Kaeley claims that his division has been able to replace over 6500 servers across globe with the new technology and use of some best practices through MRI approach.

"The trend across the globe is that a CIO has to spend an organization's IT budget in the ratio of 70:30, where 70 is the cost incurred in maintenance of the existing infrastructure and 30 is left for spending on innovation. Through our MRI approach we can covert this ratio to 60:40 and hence reduce cost by 10 per cent in 30 days," added Kaeley.

However, Dell has identified that cost saving in IT budget vary from country to country and organization to organization. In India, as per Dell's MRI approach, a CIO can go up to 65:35.

"This saving in terms of percentage may look small but when you see the IT budget of well-established enterprises, it often crosses 100 million," said CV Venkata Subramaniam, country head, Global Consulting Services, Dell India.

Subramaniam explained that there are various factors that count in reduction of cost. In these factors, energy is one important aspect.

He pointed out that enterprises, where in-house IT infrastructure is unavoidable, are reducing cost by using latest computing power and replacement of obsolete technology time-to-time. This result in low power consumption and in case of data centers less heat dissipation. This, in turn, helps companies save on the cost of cooling.

"Investment pattern in India is also different from the prevailing system in some other countries, especially in developed nations. In India, most of the companies are spending on capacity building whereas in most of the developed countries, companies are going for consolidation of servers," said Subramaniam.

Dell has also observed that use of new technology, especially like Unified Communication, has helped much enterprises in saving a lot on their IT expenditure.

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Vishwanath said on 11/2/2009 1:38:58 PM:
Please correct the MRI expansion, its not Management Rapid Insight its Measurable Rapid Insight

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