tco

IBM to Invest $1B in Flash Promotion

The following is excerpted from an Objective Analysis Brief e-mailed to our clients on 15 April, 2013:

Comparison of 3-Year Operating Costs: Flash vs HDD (Wikibon)On April 11 IBM kicked off “The IBM Flash Ahead Initiative”, committing to spend more than $1 billion for flash systems and software R&D and to open twelve IBM Flash Centers of Competency around the world staffed with flash experts armed with flash systems to help clients test drive flash in their own situations.

This follows from IBM’s August 2012 agreement to acquire privately-held Texas Memory Systems (TMS), a very low profile manufacturer of high-performance flash-based memory arrays and PCIe SSDs. TMS is the world’s oldest SSD maker, founded in 1976, to manufacture RAM-based replicas of HDDs. About four years ago TMS used its Continue reading

SSDs and TCO

Shed some light on your SSD decisionOne of the best arguments to use an SSD is also one of the most difficult ways to sell anything.  This is the Total Cost of Ownership, commonly abbreviated to “TCO.”

TCO has been used as an argument for buying anything from compact fluorescent bulbs to Jaguar automobiles.

The argument usually revolves around an item whose initial price is higher, but which has lower ongoing (or operating) costs, and when these costs are combined, the higher-priced item proves to cost less to own over the long run.  In the case of a compact fluorescent (CF) bulb, the bulb may cost $7, versus $1 for an incandescent bulb, but it consumes 18 Watts compared to the 75 Watts consumed by the incandescent bulb it replaces.  In addition the CF bulb lasts ten times as long (10,000 hours vs. 1,000 hours.)  This works out to a savings of 470 kWh – or about $50 – plus $3 in bulb costs. Continue reading