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Merrill Lynch Sizes Up Network Storage

The economic case for networked storage is just too darn compelling,” according to Merrill Lynch & Co. Inc.
chief storage analyst, Thomas Kraemer.

At a conference in New York, Tuesday, Kraemer gave his forecast for the storage market over the next 12 months and came up with some interesting observations.

"The strong economic rationale for networked storage is obvious when the dollar cost per terabyte is added up for direct-attached storage [DAS] systems versus NAS and SAN solutions... The network solution is half the cost,” he said.

Economies of scale are achieved, he claims, as labor costs are significantly reduced in a networked storage setting.

Kraemer estimates the cost of hardware alone for networked models will save the industry up to $8 billion versus direct-attached systems.