The “Other” Storage Migration: Moving from CapEx to OpEx

//The “Other” Storage Migration: Moving from CapEx to OpEx

The “Other” Storage Migration: Moving from CapEx to OpEx

Kerry Telling

Purchase decisions in the storage industry have always been driven by a few key characteristics: performance, scalability, security, high availability and cost. Until recently, these key characteristics were only contained in traditional storage. Confidence in traditional storage relied heavily upon well-known name brands such as EMC or NetApp. You may have heard the common notion that “you will never be fired for purchasing EMC” because of its reputation as a dependable, high performance and secure solution. (IT Brand Pulse, Industry Brief: Five Trends Defining the Future of Enterprise Storage)

Traditional Capital Expenditure (CapEx) storage has long reigned as the go-to enterprise storage solution that guaranteed enterprise features critical to business needs. Traditional storage vendors had not experienced a true threat from outside competition. That is until the Operational Expense (OpEx) storage-as-a-service model disrupted the industry.

Combining both the best performance and security features of traditional storage with the scalability and flexibility of the cloud solved many difficult storage challenges tied to clunky, commitment-heavy CapEx storage such as over-provisioning or ongoing refresh cycles.

OpEx storage boasts the same enterprise capabilities, performance and security of CapEx storage, with the added benefit of complete flexibility and scalability. While the OpEx model eases a multitude of pain points in storage management, some business may still have reservations concerning the cost.

Can an ongoing monthly operational expense truly be more cost-effective than a one time capital storage expense?

Most OpEx vs. CapEx discussions attempt to compare unit for unit which of the two are the least expensive; however, this comparison doesn’t take into consideration certain complexities and associated costs. While traditional storage appears to be a one-time purchase, the associated operational costs of managing the storage are quite significant, though not always monetary. IT departments have to plan resources according to business peaks, incur an extensive time commitment, and still perform their regular business responsibilities.

Instead, storage-as-a-service operational expenses wrap all associated management costs into a consumption-based payment, allowing for variable usage and cost savings for users. Businesses have the ability to scale their storage up or down at any time with ease, even hibernating assets when they are not in use. Therefore, the cost of the storage aligns perfectly with the usage.

CapEx, on the other hand, requires significant guesswork when planning for future storage needs anywhere from 6 months to 5 years in advance. Businesses find over- or under-provisioning difficult to avoid when storage growth is far from predictable.

More and more businesses are recognizing the benefits of OpEx storage-as-a-service. Before planning the next CapEx refresh cycle, consider the overall value of what OpEx would mean for your business in terms of newly freed up management resources, ability to expect the unexpected with complete storage flexibility and agility and compelling cost-savings.


About Viatel’s Zadara Storage:

Viatel Storage offers enterprise Storage-as-a-Service (STaaS) through partnership with the award-winning Zadara Storage Cloud. It can be deployed at any location (cloud, on-premises or hybrid), supporting any data type (block, file and object) and connecting to any protocol (FC, iSCSI, iSER, NFS, CIFS, S3, Swift). Learn more at or contact our team at         

2018-08-16T16:02:52+00:00 November 2nd, 2017|Business Blog|
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