KPMG_Case_Study

CASESTUDIESONTHEBUSINESSIMPACTANDSTRATEGICVALUEOFSTORAGEAREANETWORKSContentsExecutiveSummary.....................................1Introduction.........................................1PurposeandMethodologiesofStudy.......................2BackgroundofStudyParticipants..........................2SANDefinitionandDescription..........................3SummaryofPrincipalFindings...........................3TheStudyParticipantsHaveTranslatedtheirSANsintoCompetitiveAdvantages.............................5Intuit,Inc.............................................6CaseStudySummary..................................6CompanyandBusinessUnitBackground....................7ThePre-SANInfrastructure—SpringandSummer1998..........8ThePost-SANEnvironment—VastImprovementsinStorageConsolidation,BackupandRestore,andDisasterTolerance........9Conclusion.........................................10FedEx...............................................11CaseStudySummary..................................11CompanyBackground................................12ADescriptionofthePre-SANState.......................13DescriptionofPost-SANEnvironment.....................14Conclusion.........................................15CONTENTSIntroductionThevolumeofdatathatcompaniesprocessandstoreisexploding,alongwiththecostofmanagingthatdata.Thisunprecedentedgrowth,coupledwithcompanies’needtofocusmoreoncustomerservicethanstorageadministration,requiresorganizationstothoroughlyanalyzetheirinvestmentsindata-storageinfrastructures.Datastorageisbecomingsuchavitalstrategicelementofanenterprise’ssuccessthatJohnT.McArthur,VicePresidentatIDC,recentlycommented,“Informationisthelifebloodofthemodernenterprise.Drivenbyadvancesinthestorageandtransmissionofinformation,enterprisescanmakehighlyinformedbusinessdecisions.”FurtherevidenceofthistrendcomesfromaMay2001GartnerDataquestreportthatshowsexternalstoragegrowingata104percentcompoundannualrate,toover3.8millionterabytesin2005.Seventy-twopercentofthatstoragein2005,accordingtoGartner,willbeStorageAreaNetwork(SAN)-attached.SANsaregainingmomentumasadatastoragesolution.BrocadeCommunicationsSystems,Inc.,aleadingmanufacturerofswitchesandsoftwareforSANs,engagedKPMGConsultingtoanalyzeandquantifythebusinessbenefitsofSANsthatsomeofitsselectedcustomershaverealized.Twoofthese—Intuit,Inc.andFederalExpressCorporation—grantedinterviews,filledoutquestionnairesandsharedtechnicaldocumentation,enablingtheKPMGConsultingprofessionalstocompilesignificantdataregardingtheirSANdeployments.TheconsultantsalsoworkedwithBrocadetogenerateafinancialmodelthatanalyzedthereturnonthecompanies’investmentswhencomparedwiththedirect-attachedstoragearchitecturethattheyhadpriortotheSAN1.Thefollowingarethekeyfindingsfromthestudyofthetwocompanies:•SANsprovidesubstantialbusiness,financial,andoperationalbenefits•ThemajorbenefitsofaSANinclude:-Reducedcapitalexpenditures-IncreasedITstaffefficiency-Highersystemandapplicationavailability-Highlyscalable,flexiblestoragearchitecture-Enhancedabilitytoefficientlyexploitthefullvalueofacompany’sinformationassets•ThefinancialreturnfromimplementingaSANissignificant•CompaniescanuseSANstoimprovetheircompetitiveposition11ThesecalculationsaregeneratedbyafinancialmodelpreparedbyKPMGConsultingandBrocade.Forafulllistandexplanationoftheassumptionsanddefinitionsunderwhichthiscalculationwasmade,pleaseconsultMethodologyandGeneralFinancialModelfortheEvaluationofaStorageAreaNetwork,Brocade,May2001.2ThisExecutiveSummaryprovidesageneraloverviewofthestudy,thecompaniesinvolved,andtheresultsthecompaniesachieved.PurposeandMethodologiesofStudyAsdatastoragehasbecomeincreasinglyimportant,so,too,haschoosingthecorrectstoragesolution.Storagealternativesinthemarketplacetodayhavebothtechnicalandfinancialcomponentsthatmustbefullyunderstoodbeforecompaniescanmaketheappropriatechoicefortheirneeds.Thisunderstandingrequiresenhancedcommunicationbetweentechnicalpersonnelandbusinessdecisionmakers.Whilethetechnicalstaffmighthaveathoroughknowledgeoftheoptimalstoragesolutionfromatechnicalperspective,theymustbeabletoarticulatethebusinessvalueinawaythatadecisionmakercanunderstand.BrocadeengagedKPMGConsultingtogainabetterideaofthebusinessbenefitsrealizedbycompaniesthathaveinvestedinSANtechnology.Brocade’sgoalwastohaveanindependententityquantify,ascompletelyaspossible,theexperiences,costs,andbenefitsofaBrocadeStorageAreaNetworkimplementation.AmongtheinformationsoughtfortheSANimplementationwasthefollowing:•Thecompany’sdecision-makingfactorsinconsideringaSAN•Keybusinessproblemstobeaddressedbyastoragesolution•CostsofimplementingaSAN•Performanceandeffectivenessofpre-andpost-SANsystemsKPMGConsultingfocusedontheselectedcustomers’ITbusinessunitsasawholeand,inmuchgreaterdetail,ontheSANsolutionsimplemented.Theconsultantsgatheredthedatacontainedhereinbydisseminatingquestionnaires,conductinginterviewsoftheITmanagementandstaff,andreviewingnumerousarchitecturaldiagramsandothertechnicaldocuments.BackgroundofStudyParticipantsIntuit,Inc.Intuit,Inc.isanindustry-leadingdeveloperandmarketerofconsume