Determining cloud storage requirements is crucial for businesses to ensure efficient data management and accessibility. Different business types, from startups to large enterprises, have varied needs for cloud storage, driven by factors like data volume, security, and compliance.
In this topic, you will learn about:
- organisational requirements, guidelines and standards
- costs and organisational impacts of cloud storage
- business types requiring cloud storage
- preparing a business case.
Reviewing requirements, guidelines, and standards helps in aligning storage solutions with regulatory and operational needs. Assessing specific cloud storage needs involves understanding data types, access patterns, and growth projections. Developing a cloud strategy tailored to the business ensures seamless integration and future scalability. Finally, preparing a robust business case justifies the investment, highlighting benefits such as cost savings, improved performance, and competitive advantage.
When deciding on the best cloud storage options, it is critical to consider organisational requirements, guidelines, and industry standards for several reasons:
- Compliance and legal adherence: Ensuring compliance with industry-specific regulations (such as GDPR, HIPAA, PCI DSS) and local laws helps avoid legal penalties and maintain business integrity.
- Security and data protection: Adhering to established guidelines and standards ensures robust security measures are in place, protecting sensitive data from breaches and cyber threats.
- Operational efficiency: Aligning storage solutions with organisational needs and standards ensures optimal performance, cost-effectiveness, and scalability.
- Risk management: Following industry standards mitigates risks associated with data loss, system downtimes, and regulatory non-compliance.
- Reputation and trust: Demonstrating compliance and adherence to best practices builds trust with customers, partners, and stakeholders, enhancing the organisation’s reputation.
Gather and review organisational requirements
Gathering and reviewing organiational requirements primarily involves the following.
- Identifying business needs: Determine the volume, type, and sensitivity of data to be stored. Understand the business’s growth projections and data access requirements.
- Obtaining stakeholder input: Engage with stakeholders from different departments (e.g., IT, legal, finance) to gather comprehensive requirements.
- Current infrastructure analysis: Evaluate existing data storage solutions and their limitations. Identify integration needs with current systems.
Watch
The following video discusses the key considerations when understanding an organisation’s storage requirements.
Examples of organisational storage requirements
The following table outlines some of the key organisational requirements and considerations when deciding on cloud storage options.
| Key considerations | Requirement for data storage | Example business context |
|---|---|---|
| Data volume and scalability | This involves understanding the amount of data that needs to be stored and how this volume is expected to grow over time. | A company might need scalable storage solutions to handle increasing data from customer transactions, analytics, and multimedia content. |
| Data access and performance | Requirements around how frequently and quickly data needs to be accessed. | An e-commerce platform might require high-performance storage to ensure quick access to product databases and user information. |
| Security and compliance | Ensuring that data is stored securely and complies with relevant legal and regulatory requirements. | A healthcare provider must ensure that patient data is stored in compliance with HIPAA regulations to protect sensitive health information. |
| Cost management | Budget considerations for both initial setup and ongoing operational costs. | A startup might look for a cost-effective pay-as-you-go storage option to manage cash flow effectively. |
| Integration and compatibility | Ensuring that the cloud storage solution can integrate seamlessly with existing IT infrastructure and applications. | A financial services firm needs cloud storage that works with their current analytics and reporting tools. |
Below are two key steps in assessing data storage practices that will help you understand the components involved in ensuring that an organisation’s data infrastructure is robust and future-proof:
Step 1: Gather information on current data storage practices:
- Identify the types of data being stored and their volumes.
- Understand the current storage infrastructure and its limitations.
- Review data retention policies and access control mechanisms.
Step 2: Evaluate organisational data storage requirements:
- Assess scalability needs based on projected data growth.
- Determine security requirements for sensitive and confidential data.
- Evaluate accessibility needs for different departments and remote teams.
Review guidelines and industry standards
Reviewing guidelines and industry standards involves the following:
- Industry regulations: Identify and understand industry-specific regulations that impact data storage. For example, GDPR for data protection in Europe, HIPAA for healthcare data in the US.
- Compliance frameworks: Review relevant compliance frameworks such as ISO/IEC 27001 for information security, NIST guidelines, and Cloud Security Alliance (CSA) best practices.
- Internal policies: Ensure alignment with the organisation’s internal IT policies and data governance frameworks.
Additional guidelines for on-premises cloud storage solutions
Following Work Health and Safety (WHS) guidelines and sustainability requirements for on-premises cloud storage solutions is crucial for several reasons.
- WHS guidelines ensure the safety and well-being of employees managing and maintaining the physical infrastructure, reducing the risk of accidents and health issues.
- Adhering to sustainability requirements helps minimise the environmental impact of data centers by promoting energy efficiency, reducing carbon footprint, and managing electronic waste responsibly.
This not only aligns with corporate social responsibility goals but also enhances the organisation's reputation and compliance with regulatory standards, leading to long-term operational and cost benefits. By adhering to WHS standards and sustainability requirements, organisations can ensure a safe and environmentally responsible approach to on-premises data storage.
Work Health and Safety (WHS) standards
Organisational WHS standards that apply when setting up and maintaining an on-premises data storage solution, mainly concerns the following.
- Physical safety: Ensure the physical environment where data storage equipment is housed complies with WHS standards, including safe access, adequate lighting, and clear signage.
- Ergonomics: Implement ergonomic practices for employees who manage and maintain the data storage infrastructure, including appropriate seating, workstations, and handling equipment.
- Emergency procedures: Develop and maintain emergency procedures for fire safety, electrical hazards, and equipment malfunctions. Ensure all employees are trained and familiar with these procedures.
- Electrical safety: Regularly inspect and maintain electrical systems and equipment to prevent hazards. Ensure all electrical installations comply with relevant standards such as AS/NZS 3000 (the Australian/New Zealand Wiring Rules).
- Manual handling: Provide training and equipment for safe manual handling of heavy data storage devices to prevent injuries. Follow guidelines in standards like AS/NZS 3760 for in-service safety inspection and testing of electrical equipment.
- Ventilation and temperature control: Ensure proper ventilation and temperature control systems are in place to prevent overheating of equipment, which can pose both a fire risk and a health risk to employees working in those environments.
- Battery handling:Follow WHS guidelines for the safe handling and disposal of batteries used in uninterruptible power supplies (UPS) and other backup systems.
- Chemical safety: Ensure safe storage and handling of any cleaning or maintenance chemicals used in the data center environment, in accordance with relevant WHS standards such as those outlined in the Globally Harmonized System of Classification and Labelling of Chemicals (GHS).
Sustainability requirements and guidelines
- Efficient hardware: Use energy-efficient servers and storage devices that comply with standards such as ENERGY STAR for data centers.
- Power Usage Effectiveness (PUE): Monitor and optimize PUE to improve the energy efficiency of the data center. Aim for a PUE as close to 1.0 as possible.
- Green power: Source electricity from renewable energy providers where possible. Implement on-site renewable energy solutions, such as solar panels, to reduce reliance on non-renewable energy sources.
- Carbon offsetting: Invest in carbon offsetting projects to compensate for the carbon footprint of the data storage infrastructure.
- E-waste management: Implement a comprehensive e-waste management policy for the recycling and disposal of outdated or broken equipment, following standards such as ISO 14001 for environmental management systems.
- Lifecycle management: Adopt practices for the responsible lifecycle management of IT equipment, including refurbishing and repurposing old hardware.
- Advanced cooling solutions: Utilise advanced cooling solutions, such as liquid cooling or free-air cooling, to reduce the energy consumption of HVAC systems.
- Hot/Cold aisle containment: Implement hot and cold aisle containment strategies to improve cooling efficiency and reduce energy consumption.
- Green building standards: Design and operate the data center according to green building standards like LEED (Leadership in Energy and Environmental Design) or BREEAM (Building Research Establishment Environmental Assessment Method) to ensure sustainable construction and operation.
Steps to review guidelines and industry standards
Step 1: Review existing guidelines and compliance requirements:
- Examine the organisation’s data storage guidelines and policies.
- Identify relevant industry standards and regulatory requirements (e.g., Privacy Act 1988, Australian Privacy Principles).
- Ensure alignment with internal and external audit recommendations.
Step 2: Identify Industry Standards for Cloud Storage:
- Research best practices and standards for cloud storage solutions (e.g., ISO/IEC 27018, NIST guidelines).
- Analyse security certifications and compliance measures provided by leading cloud storage providers.
Practice
Complete the following three activities based on the cloud technology concepts covered in this topic.
You may repeat this activity as often as you like. Use the arrows to move between the different activities.
Understanding the operational and economic benefits of cloud storage options is essential for businesses seeking to enhance efficiency and drive innovation.
Understanding cloud storage costs
Cloud storage offers unparalleled scalability, flexibility, and accessibility, making it an attractive solution for organisations of all sizes. However, navigating the complex pricing structures and hidden expenses associated with cloud storage can be challenging.
By thoroughly comprehending the various cost components—ranging from direct charges for data storage and transfer to indirect expenses related to performance and compliance—businesses can make informed decisions that balance cost efficiency with operational needs. This insight is essential for developing a strategic approach to cloud storage that aligns with both financial goals and technological requirements.
Now, explore some of the typical cost categories relevant for cloud storage.
Direct costs
Direct costs are the expenses that are immediately associated with using cloud storage services. These are typically predictable and include:
- Storage costs: Charges for the amount of data stored, often based on tiers (e.g., standard, infrequent access, archive) or pricing models (e.g. pay-as-you-go, subscription-based).
- Data transfer costs: Fees for data moving in and out of the cloud, particularly egress (outbound) data transfer.
- API request costs: Costs incurred from performing operations like reading, writing, and deleting data.
Indirect costs
Indirect costs are not immediately apparent in the billing but arise from the broader use and integration of cloud storage. These include:
- Operational costs: Expenses related to monitoring, managing, and maintaining cloud storage environments, including tools and personnel.
- Performance costs: Costs associated with ensuring the cloud storage performs efficiently, including dealing with latency issues and optimising data retrieval speeds.
- Training and support costs: Investments needed to train staff on new systems and ongoing support for cloud infrastructure.
Hidden costs
Hidden costs are unforeseen expenses that can emerge over time, potentially impacting the overall cost-effectiveness of cloud storage. These include:
- Vendor lock-in: Costs associated with being dependent on a single cloud provider, which can include high fees for transferring data to another provider.
- Data redundancy: Additional costs for storing multiple copies of data to ensure redundancy and durability.
- Compliance and legal fees: Expenses for ensuring that data storage complies with regulatory requirements and for managing any legal implications related to data breaches or non-compliance.
Understanding these cost categories helps businesses make informed decisions about their cloud storage strategies, balancing financial efficiency with operational effectiveness.
Watch
The following video outlines some of the key concepts related to cloud storage and how cloud providers would typically bill cloud storage services.
Operational benefits of cloud storage
Cloud storage provides significant operational advantages, including scalability, flexibility, and accessibility. Businesses can scale their storage needs dynamically, paying only for what they use, which eliminates the need for expensive upfront investments in hardware. This scalability ensures that businesses can quickly adapt to changing data volumes without the risk of over-provisioning or under-provisioning resources.
Watch
The following video explores some of the operational benefits of cloud computing, which also applies to cloud storage solutions.
Economic benefits of cloud storage
From an economic perspective, cloud storage transforms capital expenditures (CapEx) into operational expenditures (OpEx), allowing for more predictable budgeting and financial planning. Companies can avoid the high costs associated with maintaining and upgrading on-premises infrastructure, leading to substantial savings in IT expenditure. Additionally, cloud storage providers often offer integrated security, backup, and disaster recovery solutions, which can further reduce costs and enhance data protection.
Economic benefits
The following video explores some of the economic benefits of cloud computing, which also applies to cloud storage solutions.
Security risks of the cloud
As organisations increasingly migrate their data and applications to the cloud, understanding the security risks of cloud storage has become paramount. While cloud storage offers numerous advantages such as scalability, cost-efficiency, and accessibility, it also introduces a range of security vulnerabilities that can jeopardise sensitive information.
Potential risks include data breaches, insider threats, insecure interfaces, and compliance issues, each capable of causing significant harm to a company's reputation and financial stability. Addressing these risks requires a comprehensive approach to security, encompassing robust encryption practices, vigilant access control, and continuous monitoring. By thoroughly assessing and mitigating these security challenges, organisations can harness the benefits of cloud storage while safeguarding their most valuable asset—data.
Watch
The following video outlines the security risks of cloud computing in general.
Practice
Complete the following seven activities based on the key concepts covered in this topic.
You may repeat this activity as often as you like. Use the arrows to move between the activities.Businesses of all types and sizes increasingly rely on cloud storage to meet their data management needs. From small startups looking for scalable and cost-effective solutions to large enterprises needing robust and secure data storage for massive amounts of information, cloud storage offers versatile benefits. Industries such as healthcare, finance, e-commerce, and media require reliable and compliant storage solutions to handle sensitive data, support extensive databases, and facilitate seamless collaboration. Understanding the specific requirements of different business types is essential for selecting the right cloud storage solution that ensures efficiency, security, and scalability.
Next, explore several case study scenarios of business types that may have requirements to:
- keep data on-premises
- leverage data storage at scale
- leverage more than one cloud provider
- mix on-premises with public cloud solutions.
Case Study 1: On-premises data storage
In an on-premises storage solution, data is stored within the physical infrastructure of the organisation, providing direct control over security, management, and compliance.
Financial institutions, government agencies, and healthcare providers often use on-premises storage due to strict regulatory requirements and the need for high levels of data security.
Watch
The following video discusses a scenario where a business wants to keep their data storage on-premises. When watching the video, pay attention to the specific storage requirements of the organisation and how this information can be used to decide on the best option for the organisation.
Case Study 2: Leverage data storage at scale
Utilising cloud storage solutions that can scale up or down based on the organisation's data needs, accommodating large volumes of data efficiently.
E-commerce companies, media and entertainment firms, and social media platforms benefit from scalable storage to manage vast amounts of user-generated content and transactional data.
Watch
The following video discusses a scenario where the business requires leveraging storage at scale. When watching the video, pay attention to the specific storage requirements of the organisation and how this information can help to decide on the best storage option for the organisation.
Case Study 3: Leverage more than one cloud provider
Adopting a multi-cloud strategy to utilise services from multiple cloud providers, enhancing redundancy, performance and avoiding vendor lock-in.
Large enterprises, multinational corporations, and tech companies adopt multi-cloud strategies to optimise their operations, enhance reliability, and increase flexibility in service options.
Watch
The following video discusses a scenario where a business must leverage multiple cloud providers to solve a problem. When watching the video, pay attention to the specific storage requirements of the organisation and how this information can help to decide on the best storage option for the organisation.
Case Study 4: Mix on-premises with public cloud solutions
Combining on-premises infrastructure with public cloud services, known as a hybrid cloud approach, to balance control and scalability.
Enterprises with legacy systems, educational institutions, and research organisations use hybrid cloud solutions to extend their existing infrastructure while leveraging the flexibility of the cloud for specific workloads.
Watch
The following video discusses a scenario where a business would mix on-premises with public cloud solutions. When watching the video, pay attention to the specific storage requirements of the organisation and how this information can help to decide on the best storage option for the organisation.
Scenarios where public cloud storage is not ideal
While cloud storage offers many benefits, there are scenarios where it might not be the ideal solution. The following table outlines some of these scenarios.
| Context | Reason | Examples |
|---|---|---|
| Strict regulatory compliance | Some industries have stringent data protection and privacy regulations that mandate data to be stored on-premises or within specific geographical boundaries. | Financial institutions, healthcare providers, and government agencies often face such regulatory constraints. |
| High latency requirements | Applications requiring extremely low latency and high-speed data access may not perform optimally with cloud storage due to potential delays in data transmission over the internet. | High-frequency trading firms and real-time data analytics companies may experience performance issues. |
| Limited internet connectivity | Businesses located in areas with unreliable or limited internet connectivity may struggle to access cloud storage efficiently, leading to operational disruptions. | Rural businesses, remote research facilities, and certain manufacturing plants may face connectivity challenges. |
| Data sovereignty concerns | Businesses concerned about data sovereignty, where data must reside within specific national borders, might find cloud storage unsuitable if the provider does not meet these requirements. | Defence contractors and entities handling sensitive governmental data often have strict data residency requirements. |
| Cost considerations | For some businesses, the ongoing operational costs of cloud storage, especially with high data transfer and retrieval fees, can outweigh the benefits. | Startups with tight budgets or companies with massive data archives that are frequently accessed might find cloud storage cost-prohibitive. |
| Legacy systems and integration issues | Businesses with heavily entrenched legacy systems may face significant challenges in integrating these systems with cloud storage solutions. | Manufacturing companies using old ERP systems and organisations with bespoke, outdated software might encounter compatibility issues. |
| Security concerns | Businesses dealing with highly sensitive or proprietary information may be wary of potential security breaches and prefer the perceived control of on-premises solutions. | R&D firms, intellectual property holders, and entities involved in critical infrastructure may prioritise security over cloud benefits. |
Reflection
For each of the following business types and their contexts, reflect on and decide whether they require a cloud storage solution. Then, turn the card to reveal the answer and the reasoning behind each decision.
You may repeat this activity as often as you like. Use the arrows to move between the cards.
When considering the transition to cloud storage, it is crucial to develop a comprehensive business case that justifies the investment and aligns with the strategic goals of the organisation. By presenting a thorough and compelling business case, decision-makers can make informed choices that support the long-term success and growth of the organisation.
Steps for storage planning
Effective storage planning is crucial for organisations to manage their data efficiently and cost-effectively. It involves a systematic approach to assess current and future storage needs, select appropriate storage solutions, allocate resources, and ensure robust security measures. By strategically planning storage, businesses can optimise performance, scalability, and data accessibility while minimising risks and controlling costs. This proactive approach not only supports operational continuity but also facilitates strategic decision-making aligned with organisational goals and IT infrastructure requirements.
Watch
The following video outlines the steps when planning for a cloud storage solution. When watching the video, pay close attention to the ‘Define’ what is involved in the stage.
Business case for a cloud storage solution
A well-prepared business case provides a detailed analysis of the benefits, costs, and potential risks associated with cloud storage solutions. It includes an assessment of the current data storage challenges, a comparison of alternative solutions, and a clear demonstration of how cloud storage can enhance operational efficiency, scalability, security, and cost-effectiveness. It serves as a comprehensive justification for investing in cloud storage services and includes detailed analysis and projections to support decision-making.
Watch
The following video will provide some basic guidance when preparing a business case for a cloud storage solution.
Key Elements in a Business Case for Cloud Storage
A business case for a cloud storage solution involves several key elements:
- Rationale: Clearly articulate the reasons for considering cloud storage, such as scalability, flexibility, and cost-efficiency compared to traditional on-premises solutions.
- Benefits: Identify the specific advantages expected from cloud storage, such as improved data accessibility, enhanced disaster recovery capabilities, and reduced IT infrastructure costs.
- Costs: Provide a breakdown of direct and indirect costs associated with cloud storage implementation, including initial setup costs, ongoing operational expenses, and potential hidden costs like data transfer fees.
- Risk assessment: Evaluate potential risks and challenges related to cloud storage, such as data security and compliance issues, vendor lock-in, and service availability concerns.
- Security and compliance: Address how cloud storage solutions will meet security requirements and comply with relevant regulations and standards, ensuring data protection and legal adherence.
- Strategic alignment: Align the business case with overall organisational goals and IT strategies, demonstrating how cloud storage supports growth, innovation, and competitive advantage.
Explore
Visit these two links to find out more information on creating business cases for cloud storage:
How did you go?
Congratulations on completing the topic Determine cloud storage requirements.
In this topic, you learnt about:
- organisational requirements, guidelines and standards
- costs and organisational impacts of cloud storage
- business types requiring cloud storage
- preparing a business case.
In conclusion, determining cloud storage requires a comprehensive analysis of organisational needs, adherence to guidelines and standards, understanding the costs and impacts, and recognising the specific business types that benefit from cloud storage. Organisations can align cloud storage solutions with their strategic goals by preparing a detailed business case, ensuring scalable, secure, and cost-effective data management. This approach optimises operational efficiency and positions businesses to leverage the full potential of cloud technologies in a rapidly evolving digital landscape.
Check your learning
The final set of activities for this topic is a set of questions that will help you prepare for your formal assessment.
Practice
Complete the following five activities based on storage planning as discussed in this topic.
You may repeat this activity as often as you like. Use the arrows to move between the activities.