STorage as a Service
Changes to the FASB rules of accountability are impacting customers who lease IT infrastructure. Moving forward, it will not be possible to achieve the same “off balance sheet” accounting benefits for most leases.
To remedy this, customers are moving towards service contracts, which are NOT accountable under these rules. This has been one of the primary driving factors for the cloud-based STorage as a Service (STaaS) movement. Customers can acquire cloud based storage, and pay a “service fee” instead of a “lease”. Sometimes this is also called the “cloud utility storage model” or words to that effect.
Cloud based storage, however, has massive unresolved security and performance flaws. And some of these just cannot be fixed.
Companies are being asked to hand over their most valuable intellectual property assets to a third party, by moving massive amounts of data across expensive, insecure, high latency, low throughput networks. Lately, after revelations about government snooping, and many high-profile security breaches by “black hat” hackers, the movement towards cloud computing has largely stalled out and even reversed.
To solve this gap, the new on-premises STaaS program from WARP Mechanics allows customers to procure storage, infrastructure, software, break-fix services, and managed care, as a monthly metered service. Just like the cloud, right?
But unlike “cloud” storage, the WARP solution is deployed on site at the customer’s data center or private co-lo facility, and is completely under the customer’s control. Your data has exactly the same security and performance as if you owned or leased the hardware.
This allows for off balance sheet accounting treatment while retaining customer control over the data.
This allows many customers to replace aging storage infrastructure for literally $0 in up front cost. Then, just pay monthly for the capacity that is used. WARP Mechanics owns the depreciation, and optionally can even be “on the hook” for management and warranty services. It’s all of the benefits of cloud storage, without the pitfalls.
So where’s the catch?
Obviously, you have to pay for the monthly service… which would be the case with “classic” cloud utility storage offerings as well.
But WARP’s systems are so much more space and power efficient than legacy storage that you can often replace a whole data center row of old gear with a single rack of WARP gear. Thus, you can often cover the entire monthly OpEx cost just on power and cooling savings alone.
In effect, you are paying $0 in CapEx, and $0 in incremental OpEx… So why not contact us today to find out more?