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April 24, 2009

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W. Curtis Preston

Yeah, those who are waiting for 50:1 will be waiting a long time, like forever.

My opinion is that the true point that dedupe needs to be at to make it financially viable, though, is really up to the vendors and what they sell it for. Currently I think it's too expensive. The list prices I'm finding for dedupe products still make disk more expensive than tape. From what I've seen, if the street prices are 50% of list or less, then dedupe "pays for itself." And that's hard savings. Others argue that it pays for itself sooner due to ease in management, etc. I'm talking hard dollars.

Scott Waterhouse

Well, list prices are meaningless. Lets say vendor A charges 2000 beans for something. And vendor B charges 3000 beans for what they claim is the same technology as is being sold by Vendor A. Now the customer goes out to each and says he wants a bid. Want to bet that the actual price he gets from each vendor will be within 100 beans of each other?

I have seen as a vendor, and a partner, list prices from a lot of different sources on a lot of different products, and also seen their street price. There is no correlation between list and street between product lines or vendors that I have ever see. And list price rarely has anything at all to do with selling price.

Almost every dedup opportunity I have been involved in has been cost justifiable in hard dollars.

W. Curtis Preston

I agree and disagree. I agree that no one pays list prices in the industry, and in the end it comes down to which vendor wants the business more. For example, EMC is being VERY aggressive in their discounts for 3DL products as they want to establish their footprint right now. So I would expect their street prices to be abnormally low at this time.

But I definitely don't think list prices are "meaningless." The biggest reason is the relatively common practice of discounting the purchase but not the maintenance. Maintenance (the thing you'll be paying forever) is often based off of a percentage of list price. My other reason is that I do see a correlation between list price and the cost of the technology to the vendor and/or the perceived value of that technology to that vendor. (e.g. V-Max costs more than Clarion for just that reason.)

But let me get back to where I was agreeing with the people in your survey. I think dedupe pays for itself at 20:1, assuming an average 50% discount off of list.

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