Understand how Fidelity National Information Services achieved payback within months by deploying a virtualized, tiered storage architecture from Hitachi Data Systems. Furthermore, the storage solution is projected to save FNIS more than US$27 million over three years. Learn more about the technologies and business factors that are driving this amazing return on investment.
Tiered Storage and Virtualization
in the Real World
Calculating the ROI and Cost Savings of a Move to Tiered Storage by Fidelity National
Information Services
Case Study
June 2007
Executive Summary
Does a transition to virtualized tiered storage deliver true value, a fast return on investment (ROI), and verifiable cost savings?
Can the foundational virtualization technology and intelligence of the Hitachi Universal Storage Platform produce an attractive payback period and reduce total cost of ownership (TCO)?
While industry analysts and Hitachi Data Systems both answer a resounding "Yes" to such questions, this case study offers a deeper perspective: The quantifiable economic benefits ®achieved by Fidelity National Information Services, a FORTUNE 500 company, in its recent move to Hitachi tiered storage.
This case study documents the specific business and economic value realized by one enterprise company after its first year using new storage architecture built on Hitachi tiered storage. Details include several capital expenditure (CAPEX) and operational expenditure (OPEX) savings achieved or anticipated within the first three years of deployment.
Some of the most compelling findings include:
. Payback on investment in 12 months
. 188% ROI
. A three-year CAPEX/OPEX savings valued at over US$27,000,000
Within the first year of deployment, the company had already realized payback on the investment. The company is also on track to reap the projected savings for deployment years two and three. Perhaps most compelling is the comment made by the company's vice president of enterprise storage:
" This new solution did pay for itself in less than a year, as we had hoped. In all actuality, the payback time was probably just 1a few months. " - Brad Cargile, Vice President of Enterprise Storage, Fidelity National Information Services
1 Estimates made earlier by Fidelity National Information Services vice president of enterprise storage place the actual payback period at "just a few months." Differences between the documented payback period of 12 months and that of Fidelity National Information Services ' vice president stem from a conservative estimate made by the Hitachi Data Systems team regarding related cost of an hour of scheduled or unscheduled downtime. Although industry averages for an hour of unplanned downtime at a financial service center tend to define a cost of US$4,000,000 per hour, this cost was adjusted down by the Hitachi Data Systems team to 1% of the typical downtime cost, to an estimated $40,000 per hour in order to reflect a more conservative payback and ROI profile that could be realized by other industries as well.
About the Customer
The subject of this case study is Fidelity National Information Services (FIS), a respected ®FORTUNE 500 firm in the financial and insurance sector.
Fidelity National Information Services faced a number of infrastructure challenges, which ultimately lead to its decision to implement an integrated, tiered storage architecture based on the Hitachi Universal Storage Platform. Challenges included reducing a large number of planned and unplanned outages plaguing the current environment, which consisted of isolated storage area network (SAN) islands of various EMC storage systems, and reliance on tape-based data protection. Other challenges involved cutting storage infrastructure costs while offering internal customers a more competitively priced set of support levels and services for hosting and managing their application data.
After the tiered storage solution had been in production for 12 months, a Hitachi Data Systems team versed in storage economics worked with Fidelity National Information Services to measure the ROI and payback of their move to tiered storage. Details of the subsequent findings appear in this report. These include attaining a series of significant capital expenditure (CAPEX) and operational expenditure (OPEX) savings over the first three years.
Key financial metrics of this assessment prove realization of early and significant ROI from a move to tiered storage.
Table 1. High-level Financial Metrics
Category FIS Key Financial Metrics* Investment $4,835,310 (total three-year i... [download for more]
