Strategies to Minimize the Cost of Data Collection and Storage

Strategies to Minimize the Cost of Data Collection and Storage-01

The data that businesses generate and collect is immensely valuable. But storing a fast-growing amount of data could demand overwhelming costs. Therefore, it is critical for companies to transform their enterprise storage infrastructure to be cost-efficient and scalable to their shifting requirements

In today’s data-centric world, enterprises need to manage huge amounts of data that are generated by consumer-facing processes and applications. Data management has become a crucial component of every business strategy, especially with companies struggling with data growth, data protection, data storage costs, and long-term data storage capacity to meet business requirements and regulatory compliances.

As per a report from Statista, worldwide spending on data storage units is forecasted to exceed US$78.1 billion by 2021. Moreover, the hosting, computing, and storage market is estimated to be around US$163 billion in 2021, mostly due to the increasing demand from enterprises to store larger volumes of data.

Not all data needs to be accessed immediately. Some need long-term storage solutions, mostly for regulatory reasons or because of the value that data can provide at a later date. The information archival market is growing rapidly along with the rest of the data storage market. In fact, the global market for information archiving is predicted to be worth around US$7 billion in 2021 and US$9 billion by 2023.

Enterprises are also beginning to realize that efficiently managing unstructured data is crucial to increasing visibility and revenue and also understanding customer needs, thereby empowering IT to provide high-quality service without taking up unnecessary and expensive resources. Hence, implementing a data management solution can help businesses govern this data and save money in some critical areas.

Also Read: When Employee Safety Came Before Customer Satisfaction

Visibility is Crucial

The biggest benefit of a data management solution is visibility. With unstructured data footprints growing rapidly, visibility into how data is used is essential to keep costs under control. Data storage does not take a major part of the cost; the active management of the said data is the main reason. Enterprises spend a good amount of money to actively back up and manage data.

But most of this data becomes inactive and cold in a few months, and the cost overhead becomes massive as data grows. Therefore, it is crucial to find the cold data across storage for IT to shift it to archive environments from actively managed storage. Furthermore, employees need an easily searchable view to find the right data needed to gain critical business insights rather than spending time going through millions of files on multiple storage and cloud environments.

Interview with Mark Chamberlain Vice President_ Product Development at ADPMark Chamberlain, Vice President of Product Development at ADP, says, “One way to manage costs is getting rid of data that you don’t need. A lot of companies are storing a lot of data, which is good, but you have to start asking if all that data is needed, if so, make sure you truly need it.”

“Sometimes you are storing data that might increase liability; it increases risk when it comes to the company and also understanding how the data is being used can help in storing it on different types on mediums. So if you know the access pattern of a certain data set is very different and not real-time, you can store it on a small or cheaper medium, and that will allow you to save costs as well. These are few areas that will help manage costs while also delivering on your client or employee needs,” he adds.

Efficient Storage Leads to Effective Savings

In the past, IT teams had to spend a lot of time managing storage quotas and migrating data when storage fills up. These time-consuming tasks often prevent experts from focusing on issues that need their attention. Structured data is usually manageable, but unstructured data tends to get very large very quickly and makes it more challenging to efficiently understand and manage it.

Hence, it is crucial to have a data management solution to efficiently scan through huge volumes of data and make the process of identifying cold data easy and quick. The visibility gained from it can help enterprises with monitoring employees’ use of the data, understand what is needed and what could be sent to archive storage, and also foresee future storage needs. It can also help make data accessible and secure, boosting customer confidence in an enterprises’ ability to protect their data, drive business growth, keep data storage costs from spiralling out and bring in revenue.

Data management has become a crucial component of every business strategy, especially with companies struggling with data growth, data protection, data storage costs, and long-term data storage capacity to meet business requirements and regulatory mandates.

Mark Chamberlain, Vice President of Product Development at ADP, says, “One way to manage costs is getting rid of data that you don’t need. A lot of companies are storing a lot of data, which is good, but you have to start asking if all that data is needed, if so, make sure you truly need it.”

“Sometimes you are storing data that might increase liability; it increases risk when it comes to the company and also understanding how the data is being used can help in storing it on different types on mediums. So if you know the access pattern of a certain data set is very different and not real-time, you can store it on a small or cheaper medium, and that will allow you to save costs as well. These are few areas that will help manage costs while also delivering on your client or employee needs,” he adds.

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Prangya Pandab is an Associate Editor with OnDot Media. She is a seasoned journalist with almost seven years of experience in the business news sector. Before joining ODM, she was a journalist with CNBC-TV18 for four years. She also had a brief stint with an infrastructure finance company working for their communications and branding vertical.