HPE’s enterprise storage credentials are impressive – sitting second (17.3%) behind Dell (19.1%) [although it’s growth in the last quarter was an anemic 1.9% versus 26.6% for Dell and 21.3% for the overall market] — but this week’s backup, or secondary storage, announcements are intended to redress an area where the company has been relegated to the ‘niche’ category. IDC’s numbers were for the second quarter, and they were reflected in HPE’s August quarterly earnings report, where storage revenue rose 1% to $887 million.
Given that the overall market is growing in double digits, the current results were disappointing, although the company predicted a better showing in October’s numbers.
“We expect improved organic growth in Q4 as we drive increased sales productivity and as our latest storage offerings gain customer traction,” said President and CEO Antonio Neri during the earnings call at the end of August. The good news for a vendor that has struggled to redefine itself over the last two decades is that secondary storage is undergoing explosive growth in the digital transformation (DT)-fueled economy.
This week’s four sets of announcements mean StoreOnce customers can reduce operational time by as much as 95% and achieve 23X faster backup and 15X faster recovery with less cost and complexity than competing solutions, said Patrick Osborne, VP & GM Big Data and Secondary Storage, HPE. By federating their primary storage with secondary storage and the cloud, HPE is able to optimize the data path, and save customers time and money, he told IT Trends & Analysis. “ Customers love that”.
HPE’s announcements included:
-next generation of StoreOnce backup appliance portfolio that increases business continuity with flash speed data protection in the data center and cost-efficient archive and disaster recovery in the cloud (now available starting at $4,800 for a HPE StoreOnce virtual storage appliance);
-Recovery Manager Central (RMC) 6.0 simplifies data protection and copy data management for HPE Nimble Storage (will be available December 2018 and comes standard with every HPE 3PAR and HPE Nimble Storage array);
-StoreOnce with Commvault software integration reduces the storage footprint and network bandwidth requirements to the cloud (currently available); and,
-GreenLake Backup is enhanced with StoreOnce and Commvault software integration, offering consumption-based IT models and reducing costs by up to 30% (currently available).
According to storage guru George Crump, Storage Switzerland, the capacity of secondary storage – that stores copies, backups and archives – is 5X to 10X the size of primary storage. “Secondary storage is also the most difficult to manage because of the variety of storage systems involved, ranging from high capacity NAS, to object storage, to tape libraries.”
Dell, which sells tape alternatives, states that one third of companies said restore failures were significant issues, while 40% to 70% of tape restores failed, and that 40% of IT managers have experienced situations when they have been unable to recover data from a tape when they needed it. The storage leader’s secondary storage market opportunity is considerably higher than Crump’s: ‘the backup footprint, with dailies, weeklies, monthlies, quarterlies, annuals, fulls, incrementals, differentials, local and remote can often represent as much as 30 times the capacity of your primary storage.’
This isn’t just a tape problem. A recent report of 500 senior-level IT and business managers found that over 90% do not consider their organization to be IT resilient, nearly half have suffered an unrecoverable data event in the last three years, and 77% have suffered organizational impact from a tech-related business disruption in the past two years. IDC estimates that as many as 50% of organizations ‘could not survive a disaster event‘.
When a single hour of downtime can cost a business $300,000, it’s easy to understand why backup and recovery is generating big bucks, and will continue to do so. A December report put the market at $7.13 billion in 2017, growth at 10.2% through 2022 to $11.59 billion, while a slightly more recent forecast came in at $6.98 billion (2017) and $18.21 billion (2026) growing at a CAGR of 11.24%. Disaster recovery as a service is expected to see even higher growth, from $1.94 billion in 2017 to $13.74 billion by 2023, at a CAGR of 38.58%.
“Businesses need a built-for-cloud approach to data protection and copy data management on premises and in the cloud for simple and efficient data mobility,” stated Osborne in the press release. “The solutions and services announced today enable HPE 3PAR and HPE Nimble Storage customers to effortlessly orchestrate intelligent, multi-tiered data protection from on premises arrays to the public cloud – driven by policy and business need.”
Next up on HPE’s secondary storage agenda are automation and analytics, said Osborne. “Customers don’t want to deal with backup, with data protection. They want a service… and someone to take care of data lifecycle management… we want to make it invisible and predictive to our customers.”
R-Cubed (Recent Related Reportage)
DISCLAIMER: I hold shares of HPE (and Dell).