Current and Future Economics of Deep Storage: Public vs. Private Cloud

Current and Future Economics of Deep Storage: Public vs. Private Cloud September 2015

Contents Executive Summary... 3 Section A Public vs. Private Cloud... 3 Public Cloud... 3 Private Cloud... 5 Simplicity of installation and usage... 6 Section B Cost Comparisons BlackPearl vs. Amazon Glacier... 7 Cost Model: Bandwidth and Equipment... 7 Cost Model: Data Retrieval and Performance... 9 Cost Model: 2 Year and 5 Year Comparison... 10 Conclusion... 11 Appendix A 5 Year Total Cost of Ownership for Data Growth Environment... 13 Copyright 2015 Spectra Logic Corporation. BlueScale, Spectra, SpectraGuard, Spectra Logic, TeraPack, TFinity, and TranScale are registered trademarks of Spectra Logic Corporation. ArchiveGrade, BlackPearl, IntraCloud, and ntier Verde are trademarks of Spectra Logic Corporation. All rights reserved worldwide. All other trademarks and registered trademarks are the property of their respective owners. All library features and specifications listed in this white paper are subject to change at any time without notice. Current and Future Economics of Deep Storage: Public vs. Private Cloud 2

E X E C U T I V E SUMMARY The perception of the cloud providing lower cost, increased services, and ultimate flexibility in storage is driving businesses, government agencies, colleges & Universities, and organizations to carefully examine its viability. For long-term Archival, Backup or Cold Data Storage (such as Amazon Glacier) pricing of a penny a Gigabyte per month (or less) attract attention, and open the door for cloud companies to get directly involved in what has traditionally been stored in on premise data centers. Claims of guaranteed cost savings, additional services, and more reliable operations in comparison to an in house data center have become commonplace, but the details behind actual costs and the potential risks of cloud services has been elusive. This white paper will look at these two models and how they address data storage needs to examine the true numbers associated with the total cost of ownership (TCO) for both public and private cloud and it will provide an accurate cost comparison between the two offerings over the first five years of ownership. We will look at the comparison in two ways, first for organizations that already have a large amount of data, and would need a large bandwidth pipe for all their data to reach the cloud in the desired amount of time. Second, for organizations that have a moderate amount of data with the intent for that data to grow over the coming years. For the purposes of this paper, a private cloud will be defined as a local, on-site or a fully owned and controlled, data center with a few specific characteristics: Some combination of SSD, disk, and tape for Digital Preservation of valuable data Some combination of NFS/CIFS and/or HTTP/S3 interface Data center that is under the control of the organization Equipment that does not require WAN bandwidth (and/or dedicated lines to another wholly owned facility under an organization s control) The interface to Cloud based Storage is Object Based. The defacto protocol is S3 (Simple Storage Services) which was created by Amazon Corporation and deployed by its AWS division. Nearly all cloud services (Google, IBM, Microsoft Azure and of course Amazon) have implemented a version of S3. So for this paper we will assume that S3 is used for both public and private cloud storage. S E C T I O N A PUBLI C V S. PRIVATE CLOUD P U B L I C CLOUD Let s take a look at both services and consider some of the benefits and drawbacks that need to be thought through before making a final decision. First, we will examine public cloud storage Current and Future Economics of Deep Storage: Public vs. Private Cloud 3

and Software as a Service (SaaS). Public clouds are provided by a variety of well-known vendors including Microsoft, Rackspace, Symantec, Amazon, and others. Public cloud environments utilize stacks of servers running virtual environments and are designed to provide the following benefits to organizations: CAPEX Savings - Cloud provider is supplying all the hardware, software, support, security, and high availability for the infrastructure, the organization is only paying to use the service thus saving a significant amount of money on capital expenditure. Utility-Based Computing - Users only pay for the services they use, either by subscription or transaction-based models. As the amount of data you are storing grows, the cost associated with storing that data grow with it. Scalability - Users have the ability to access additional compute resources on-demand in response to increased application loads. Shared Resources - By consolidating IT resources, multiple users share a common infrastructure, allowing costs to be more effectively managed. While the benefits mentioned above are key advantages of a public cloud, organizations still need to be cautious before moving to a public cloud. The primary concerns around public clouds today are: Bandwidth Bottleneck When you choose to store your data in the cloud you are limited to the public network your organization subscribes to as your pipe to move data to and from the cloud. When your organization s data grows, so must your pipe to the cloud to accommodate the amount of data that you are sending and receiving. This is often considered one of the largest hidden costs of cloud storage, and can become extremely costly as your data sets grow. Data Access When utilizing Amazon Glacier, you have an average Service Level Agreement (SLA) to retrieve your data of 4 hours. Some companies may find this acceptable, but others may need their information more quickly and having an on-site data center will allow you to have faster access. With a private cloud you can also set your own SLA s by storing your data on different storage tiers. Data Control The biggest aspect of data control is the security of the data that is stored in the cloud vs. in your data center. Anytime you choose to store your data in the cloud you are giving up control of your data and trusting it to an outside source. While cloud providers make every effort to protect your data, hacking and internal access are Current and Future Economics of Deep Storage: Public vs. Private Cloud 4

always a concern. The only way to truly guarantee data security is for you to own and control all access to your data. What happens to your data, the life blood and perhaps entire value of your organization, if circumstances do not allow you to pay your cloud bill? Exactly how long until your company valuation goes to zero after the last bill is paid? Vendor lock In Once an organization moves their data and applications to the cloud, it can become very difficult to break away from that provider, setting up the potential for extensive costs to migrate your data. Cloud providers charge you a premium to get your data out of the cloud. If you need to use your data for business operations, or move your entire data set to another cloud provider, your organization will be charged a premium to access and transfer this data. This fee doesn t exist when you own your own data center. Reliability When you put your data into the cloud, you are relying on them maintaining their equipment and policies around data management and retrieval. You are also putting your data into the hands of a company you want to be around for as long as you want to keep your data, which could be forever. The truth is machines fail, companies go out of business, and policies can change. The only way to truly guarantee infinite access to your data is if it is managed on-site. Generally speaking, cloud storage is a viable option for companies who have small to medium amounts of data, organizations who can function if they do not have immediate access to their data, or organizations who can function if they lose part of their information being stored in the cloud. If any of these risks sound less than ideal, then a private cloud should be considered. P R I V A T E CLOUD As the name suggests, private clouds are designed to be visible only to the organization that creates them. They are essentially traditional data centers that an organization creates in house. Private clouds provide many of the same benefits to the organization as a public cloud, but allow the organization to maintain ownership of the data and equipment. Benefits include scalability, metering, and flexible resource allocation without exposing any of the organization s assets to the public Internet. Private clouds also address some of the top concerns that prevent organizations from moving to the cloud such as expensive bandwidth to the cloud, vendor lockin, expensive data retrieval costs, and regulatory compliance in third party infrastructure. Private cloud service offers a number of advantages that make it a more viable solution. Current and Future Economics of Deep Storage: Public vs. Private Cloud 5

Higher Performance - The private cloud is deployed inside the firewall on an organization's intranet or backbone, meaning that transfer rates are dramatically increased in comparison to using the Internet. In addition, there s no worry of slow data access times that may happen with using a public cloud service. For a company to achieve the same performance that can be achieved from a Spectra BlackPearl connected to a T950 Tape Library, they would be forced to purchase a network package costing upwards of $150,000 a month. Greater Security and Control - Due to the fact that the hardware is on-site, organizations have more control over their data. They maintain complete oversight of their critical content and who has access to that data Deeper Compliance There are a lot of compliance and legal issues to consider when weighing the benefits of a public or private cloud. Sarbanes Oxley, PCI DSS, and HIPAA compliant data, when delivered through a public cloud service deployment, has the risk of being accessed by illegal means. When you consider chain of custody requirements, such as in video surveillance, the data may not be as detailed or customizable as legally required. Also, in certain countries, your data is required to reside in that same country and you have no control of location with a public cloud. These are just some of the many examples to consider. Who would use a private cloud? A private cloud service would likely be chosen when organizations feel the need for greater control of business-critical data and applications or have a large amount of data. A private cloud service is popular with highly regulated industries such as financial institutions as they are more comfortable having their data hosted privately and physically separated from other organizations. Genomics and Supercomputing industries are data intensive organizations that find private cloud a preferred option. Other industries such as Media and Entertainment, which generate massive amounts of data, also find private cloud data centers to be the preferred choice. S I M P L I C I T Y O F I N S T A L L A T I O N A N D U S A G E A key feature of public cloud storage is that it offers a simpler approach to connectivity and storage in general. Amazon pioneered the S3 http based RESTful interface for their Glacier offering, which has gained widespread acceptance. The simple interface, ability to handle long timeouts, location independence, and now nearly universal acceptance even with Amazon cloud competitors, makes it the standard interface to any cloud storage. Most high level software companies have already integrated some level of S3 out interface directly into their products allowing end users to directly access cloud storage for archive. Current and Future Economics of Deep Storage: Public vs. Private Cloud 6

At the same time, tape libraries have traditionally required costly, complicated middleware software. Tapes need to be written sequentially, metadata has to be managed, and the robotics of a library have to be controlled. Middleware companies typically charge per slot per year for this functionality. Spectra Logic s BlackPearl Deep Storage Gateway appliance takes away these complexities from the end user by incorporating everything required to run a tape library in a simple appliance. With an S3 input, software designed to interface with the public cloud can normally be repointed to a BlackPearl Deep Storage Gateway to enable a private cloud with only minor changes to client code. This solution brings together the simplicity of the public cloud S3 and the economics, security, and benefits of the private cloud. S E C T I O N B COST COMPARISONS B L A C KPEARL VS. AMAZON GLACIER Now let s look at the cost comparison more deeply. Public cloud companies have been promising cost savings over in house data centers, but the true costs associated with the total cost of ownership have been much more difficult to uncover. You must look at more than just the comparison costs of on premise equipment and monthly fees. Bandwidth and operational costs must be taken into consideration, as well as factoring in potential costs associated with growth of your initial data. For this cost comparison we are looking at Spectra Logic s BlackPearl Deep Storage Gateway paired with a standard Spectra T950 Library for our private cloud option and Amazon Glacier for our public could option. For all of our comparison work, we assumed no data compression was possible. If data is compressible it will benefit private as well as public cloud solutions equally. C O S T MODEL: B A N D W I D T H A N D E Q U I P M E N T The key questions when comparing the cost of public to private cloud are how much data needs to be stored and over what period of time? How do you move that data? And what is the direct comparison made from all involved costs? There are a few cost considerations to take into account. Let s start with bandwidth. When comparing public and private cloud data storage options, a critical, yet frequently overlooked item is the amount of throughput or bandwidth needed to fulfill an organization s needs. We chose a baseline of 70 Terabytes (70TB) of non-compressible data a day for this comparison. Current and Future Economics of Deep Storage: Public vs. Private Cloud 7

Note that 70TB per day is not the fastest rate possible with the T950 platform, but it presents a good baseline to make comparisons. For this example, 70TB would represent the required data move in a 24 hour period, due to either a backup window or some other constraint, and therefore dictates required bandwidth. To accurately compare the Spectra BlackPearl s throughput to common WAN speeds, 70TB a day needs to be converted into Gigabits per second, the industry standard performance statistic used when discussing WAN. This is done below: Spectra s BlackPearl 70TB/day throughput converts directly to 0.65GigaBytes per second (7GB/s), but a more common WAN speeds is roughly 7Gigibits/s. To support a consistent and reliable WAN connection for organizations at this speed, an OC-192 line is required. Again for this comparison we assume the data is uncompressible. Note, many companies do not consider storage windows and severely underestimate required bandwidth. For instance, while you may not need to move 70TB/day every day (the temptation being to average it out over an entire month), even if incremental backups are relatively small, full backups normally have to happen in the same window between snapshots with buffers added for any network anomalies. True peak bandwidth requirements are frequently much higher than initial estimates. The cost of leasing a connection to the internet to move this amount of data is estimated at $150,000 and $250,000 per month. We got this number by requesting competitive quotes to run a connection from Spectra s corporate headquarter. Note that Spectra s location in Boulder is adjacent to railroad line where optical fibre runs. For argument s sake, we are choosing the lower end of the range, or a cost of $150,000 price per month. This does not include the cost of the LAN to WAN connectivity equipment. To achieve the same performance as the Spectra BlackPearl, an OC-192 line, costing a business $150,000 per month is required. The Spectra BlackPearl Deep Storage Gateway provides S3 connectivity through 10 and/or 40 Gigabit Ethernet ports. For high capacity storage, the BlackPearl appliance is connected to a T950 Tape Library with 6 LTO-6 tape drives (see table A below for a breakout of costs). The approximate price of the BlackPearl and T950 which includes equipment and media purchase, installation, and configuration from Spectra is $278,371. This includes all support, media, additional scale out and additional hardware (highlighted yellow cells are additional frame purchases) needed in future years. Current and Future Economics of Deep Storage: Public vs. Private Cloud 8

Part# Qty Price Extended T950 Tape Library 1 $86,150.00 T950 Tape Library 1 $6,600.00 T950 Tape Library 1 $2,800.00 BlackPearl Deep Storage Gateway 1 $38,000.00 Support 1 $7,500.00 SHIPINS 1 $1,119.94 SD Card 4 $4.00 Media - Access Slots 5 $875.00 Media 7 $3,500.00 LTO-6 Tape Drives 6 $113,700.00 Install / Professional Services 1 $10,500.00 Install / Professional Services 1 $6,000.00 Cables 12 $1,622.00 Total $278,370.94 If you just look at the cost of equipment and bandwidth, the Spectra system would pay for itself in two months before cloud storage or retrieval costs. What also needs to be considered is exponential data growth. If your organization expects the amount of data to be stored to grow over time, then your bandwidth costs continue to increase exponentially as well. C O S T MODEL: DATA RE T R I E V A L A N D P E R F O R M A N C E When considering cloud storage, bandwidth cost is considerable, but the cost to actually store and retrieve data is also a significant cost. The ability to store data at a penny per gigabyte sounds like an inexpensive storage model, but organizations have to pay a premium to access their data. Amazon charges its customers 10 times the storage cost per gigabyte to retrieve data, meaning if an organization ever has to restore data being stored in the cloud, a large retrieval bill will follow. For the complete cost comparison we are looking at data in this way. Original amount of data = 150TB Growth per month = 30TB Retrieval / Get amount = 10% per month Current and Future Economics of Deep Storage: Public vs. Private Cloud 9

The cost of retrieval is significant, but access time should also be considered. Cloud storage services have a range of performance of 3 seconds (for Google) to 4 hours (the amount of time it takes to restore information form Amazon s Glacier system. The T950 robotic tape library will require approximately 2 minutes to access a file on tape. The last piece of the cost puzzle we are considering is the labor costs to run your data center vs. the cost of a cloud based operations (Salary found on Glassdoor.com). C O S T MODEL: 2 Y E A R A N D 5 YE A R COMPARISO N Private Cloud using Spectra Equipment Amazon Glacier Total Capacity in TB (Through Month 25) 900 TB Total Capacity in TB (Through Month 25) 900 TB Hardware Cost $ 248,876.00 Data Storage Fees $ 136,500.00 Up-Front Media Costs $ 4,375.00 Labor Costs $ 89,583.33 Install / Professional Services $ 16,500.00 Bandwidth Costs $ 105,000.00 Shipping $ 1,119.94 Retrieval Fees $ 135,000.00 Support $ 7,500.00 Labor Costs $ 89,583.33 Rent for Data Center $ 36,000.00 Additional Media and Hardware $ 58,312.00 25 Month Total for Spectra Solution $ 462,266.27 25 Month Total For Amazon Glacier $ 466,083.33 *Full TCO Model can be found in Appendix A Private Cloud using Spectra Equipment Comparison after 5 Years Amazon Glacier Total Capacity in TB (Through Month 69) 2220 TB Total Capacity in TB (Through Month 69) 2220 TB Hardware Cost $ 248,876.00 Data Storage Fees $ 829,500.00 Up-Front Media Costs $ 4,375.00 Labor Costs $ 247,250.00 Install / Professional Services $ 16,500.00 Bandwidth Costs $ 281,000.00 Shipping $ 1,119.94 Retrieval Fees $ 828,000.00 Support $ 7,500.00 Labor Costs $ 247,250.00 Rent for Data Center $ 99,360.00 Additional Media, Hardware, and Renewals $ 154,817.58 69 Month Total for Spectra Solution $ 779,798.52 69 Month Total For Amazon Glacier $ 2,185,750.00 *Full TCO Model can be found in Appendix A Current and Future Economics of Deep Storage: Public vs. Private Cloud 10

After examining the cost model for this very moderate data usage, it is clear that after only 2 years and one month (25 months) it is more cost effective to create your own data center. The costs of creating your own data center are frontloaded, but if you plan on keeping your data for more than two years it is clear that you save money after two years. When comparing over a 5 year span, it is clear that a private cloud is more cost effective. To be clear, cloud storage has its place: small amounts of data, data that is intended to be stored but never retrieved, and data that needs easy and instant worldwide sharing are perfect applications for public cloud. For data sets over 50TB, that require real digital preservation, known tracking and ownership, and accessibility even if only needed once, are almost always better served by a private cloud. An honest total cost of ownership analysis, as you have seen, shows the significant cost savings of this approach. C O S T M O D E L G R A P H C O N C L U S I O N After carefully evaluating the two different models that address data storage needs, it is clearly beneficial to construct your own private cloud vs. storing your data in a public cloud environment. For Cold storage, long-term archival, and backup applications, organizations who value their data will not only save money when constructing a private cloud, but also gain superior performance. Current and Future Economics of Deep Storage: Public vs. Private Cloud 11

Deep Storage Experts Spectra Logic develops deep storage solutions that solve the problem of long term storage for business and technology professionals dealing with exponential data growth. Dedicated solely to storage innovation for more than 35 years, Spectra Logic s uncompromising product and customer focus is proven by the largest information users in multiple vertical markets globally. Spectra enables affordable, multi decade data storage and access by creating new methods of managing information in all forms of deep storage including archive, backup, cold storage, cloud, and private cloud. For more information, please visit http://www.spectralogic.com. 303-449-6400 800-833-1132 (Fax) 303-939-8844 6285 Lookout Road Boulder, CO 80301 USA spectralogic.com

A P P E N D I X A 5 Y E A R T O T A L C O S T O F O W N E R S H I P F O R D A T A G R O W T H E N V I R O N M E N T Date Storage Growth Total Storage Cost Hardware Labor Costs to operate Data Center Rent cost for Data Center Spectra Cloud Total Glacier Storage Costs Labor Costs to operate Data Center Day 1 150 150 $ 278,375.00 $ - $ - $ 278,375.00 $ 1,500.00 $ - $ 5,000.00 $ 6,500.00 1 MO 30 180 $ 2,494.50 $ 3,583.33 $ 1,440.00 $ 285,892.83 $ 1,800.00 $ 3,583.33 $ 4,000.00 $ 1,800.00 $ 17,683.33 2 MO 30 210 $ 2,481.00 $ 3,583.33 $ 1,440.00 $ 293,397.17 $ 2,100.00 $ 3,583.33 $ 4,000.00 $ 2,100.00 $ 29,466.67 3 MO 30 240 $ 2,467.50 $ 3,583.33 $ 1,440.00 $ 300,888.00 $ 2,400.00 $ 3,583.33 $ 4,000.00 $ 2,400.00 $ 41,850.00 4 MO 30 270 $ 2,454.00 $ 3,583.33 $ 1,440.00 $ 308,365.33 $ 2,700.00 $ 3,583.33 $ 4,000.00 $ 2,700.00 $ 54,833.33 5 MO 30 300 $ 2,440.50 $ 3,583.33 $ 1,440.00 $ 315,829.17 $ 3,000.00 $ 3,583.33 $ 4,000.00 $ 3,000.00 $ 68,416.67 6 MO 30 330 $ 2,427.00 $ 3,583.33 $ 1,440.00 $ 323,279.50 $ 3,300.00 $ 3,583.33 $ 4,000.00 $ 3,300.00 $ 82,600.00 7 MO 30 360 $ 2,413.50 $ 3,583.33 $ 1,440.00 $ 330,716.33 $ 3,600.00 $ 3,583.33 $ 4,000.00 $ 3,600.00 $ 97,383.33 8 MO 30 390 $ 2,400.00 $ 3,583.33 $ 1,440.00 $ 338,139.67 $ 3,900.00 $ 3,583.33 $ 4,000.00 $ 3,900.00 $ 112,766.67 Indicates breakeven date 9 MO 30 420 $ 2,386.50 $ 3,583.33 $ 1,440.00 $ 345,549.50 $ 4,200.00 $ 3,583.33 $ 4,000.00 $ 4,200.00 $ 128,750.00 Indicates additonal frame purchase 10 MO 30 450 $ 2,373.00 $ 3,583.33 $ 1,440.00 $ 352,945.83 $ 4,500.00 $ 3,583.33 $ 4,000.00 $ 4,500.00 $ 145,333.33 for capacity 11 MO 30 480 $ 2,359.50 $ 3,583.33 $ 1,440.00 $ 360,328.67 $ 4,800.00 $ 3,583.33 $ 4,000.00 $ 4,800.00 $ 162,516.67 Amount of data on Day 1 of analysis 12 MO 30 510 $ 2,346.00 $ 3,583.33 $ 1,440.00 $ 367,698.00 $ 5,100.00 $ 3,583.33 $ 4,000.00 $ 5,100.00 $ 180,300.00 13 MO 30 540 $ 2,332.50 $ 3,583.33 $ 1,440.00 $ 375,053.83 $ 5,400.00 $ 3,583.33 $ 4,000.00 $ 5,400.00 $ 198,683.33 14 MO 30 570 $ 2,319.00 $ 3,583.33 $ 1,440.00 $ 382,396.17 $ 5,700.00 $ 3,583.33 $ 4,000.00 $ 5,700.00 $ 217,666.67 15 MO 30 600 $ 2,305.50 $ 3,583.33 $ 1,440.00 $ 389,725.00 $ 6,000.00 $ 3,583.33 $ 4,000.00 $ 6,000.00 $ 237,250.00 16 MO 30 630 $ 2,292.00 $ 3,583.33 $ 1,440.00 $ 397,040.33 $ 6,300.00 $ 3,583.33 $ 4,000.00 $ 6,300.00 $ 257,433.33 17 MO 30 660 $ 2,278.50 $ 3,583.33 $ 1,440.00 $ 404,342.17 $ 6,600.00 $ 3,583.33 $ 4,000.00 $ 6,600.00 $ 278,216.67 18 MO 30 690 $ 2,265.00 $ 3,583.33 $ 1,440.00 $ 411,630.50 $ 6,900.00 $ 3,583.33 $ 4,000.00 $ 6,900.00 $ 299,600.00 19 MO 30 720 $ 2,251.50 $ 3,583.33 $ 1,440.00 $ 418,905.33 $ 7,200.00 $ 3,583.33 $ 4,000.00 $ 7,200.00 $ 321,583.33 20 MO 30 750 $ 2,238.00 $ 3,583.33 $ 1,440.00 $ 426,166.67 $ 7,500.00 $ 3,583.33 $ 4,000.00 $ 7,500.00 $ 344,166.67 21 MO 30 780 $ 2,224.50 $ 3,583.33 $ 1,440.00 $ 433,414.50 $ 7,800.00 $ 3,583.33 $ 4,000.00 $ 7,800.00 $ 367,350.00 22 MO 30 810 $ 2,211.00 $ 3,583.33 $ 1,440.00 $ 440,648.83 $ 8,100.00 $ 3,583.33 $ 4,000.00 $ 8,100.00 $ 391,133.33 23 MO 30 840 $ 2,197.50 $ 3,583.33 $ 1,440.00 $ 447,869.67 $ 8,400.00 $ 3,583.33 $ 4,000.00 $ 8,400.00 $ 415,516.67 24 MO 30 870 $ 2,184.00 $ 3,583.33 $ 1,440.00 $ 455,077.00 $ 8,700.00 $ 3,583.33 $ 4,000.00 $ 8,700.00 $ 440,500.00 25 MO 30 900 $ 2,170.50 $ 3,583.33 $ 1,440.00 $ 462,270.83 $ 9,000.00 $ 3,583.33 $ 4,000.00 $ 9,000.00 $ 466,083.33 26 MO 30 930 $ 2,157.00 $ 3,583.33 $ 1,440.00 $ 469,451.17 $ 9,300.00 $ 3,583.33 $ 4,000.00 $ 9,300.00 $ 492,266.67 27 MO 30 960 $ 2,143.50 $ 3,583.33 $ 1,440.00 $ 476,618.00 $ 9,600.00 $ 3,583.33 $ 4,000.00 $ 9,600.00 $ 519,050.00 28 MO 30 990 $ 2,130.00 $ 3,583.33 $ 1,440.00 $ 483,771.33 $ 9,900.00 $ 3,583.33 $ 4,000.00 $ 9,900.00 $ 546,433.33 29 MO 30 1020 $ 2,116.50 $ 3,583.33 $ 1,440.00 $ 490,911.17 $ 10,200.00 $ 3,583.33 $ 4,000.00 $ 10,200.00 $ 574,416.67 30 MO 30 1050 $ 2,103.00 $ 3,583.33 $ 1,440.00 $ 498,037.50 $ 10,500.00 $ 3,583.33 $ 4,000.00 $ 10,500.00 $ 603,000.00 31 MO 30 1080 $ 2,089.50 $ 3,583.33 $ 1,440.00 $ 505,150.33 $ 10,800.00 $ 3,583.33 $ 4,000.00 $ 10,800.00 $ 632,183.33 32 MO 30 1110 $ 2,076.00 $ 3,583.33 $ 1,440.00 $ 512,249.67 $ 11,100.00 $ 3,583.33 $ 4,000.00 $ 11,100.00 $ 661,966.67 33 MO 30 1140 $ 2,062.50 $ 3,583.33 $ 1,440.00 $ 519,335.50 $ 11,400.00 $ 3,583.33 $ 4,000.00 $ 11,400.00 $ 692,350.00 34 MO 30 1170 $ 2,049.00 $ 3,583.33 $ 1,440.00 $ 526,407.83 $ 11,700.00 $ 3,583.33 $ 4,000.00 $ 11,700.00 $ 723,333.33 Network Bandwidth Cost Data Retreival Fee Public Cloud Total 303-449-6400 800-833-1132 (Fax) 303-939-8844 6285 Lookout Road Boulder, CO 80301 USA spectralogic.com

A P P E N D I X A 5 Y E A R T O T A L C O S T O F O W N E R S H I P F O R D A T A G R O W T H E N V I R O N M E N T C O N T I N U E D Date Storage Growth Total Storage Cost Hardware Labor Costs to operate Data Center Rent cost for Data Center Spectra Cloud Total Glacier Storage Costs Labor Costs to operate Data Center 35 MO 30 1200 $ 2,035.50 $ 3,583.33 $ 1,440.00 $ 533,466.67 $ 12,000.00 $ 3,583.33 $ 4,000.00 $ 12,000.00 $ 754,916.67 36 MO 30 1230 $ 2,022.00 $ 3,583.33 $ 1,440.00 $ 540,512.00 $ 12,300.00 $ 3,583.33 $ 4,000.00 $ 12,300.00 $ 787,100.00 37 MO 30 1260 $ 2,008.50 $ 3,583.33 $ 1,440.00 $ 547,543.83 $ 12,600.00 $ 3,583.33 $ 4,000.00 $ 12,600.00 $ 819,883.33 38 MO 30 1290 $ 1,995.00 $ 3,583.33 $ 1,440.00 $ 554,562.17 $ 12,900.00 $ 3,583.33 $ 4,000.00 $ 12,900.00 $ 853,266.67 39 MO 30 1320 $ 1,981.50 $ 3,583.33 $ 1,440.00 $ 561,567.00 $ 13,200.00 $ 3,583.33 $ 4,000.00 $ 13,200.00 $ 887,250.00 40 MO 30 1350 $ 1,968.00 $ 3,583.33 $ 1,440.00 $ 568,558.33 $ 13,500.00 $ 3,583.33 $ 4,000.00 $ 13,500.00 $ 921,833.33 41 MO 30 1380 $ 1,954.50 $ 3,583.33 $ 1,440.00 $ 575,536.17 $ 13,800.00 $ 3,583.33 $ 4,000.00 $ 13,800.00 $ 957,016.67 42 MO 30 1410 $ 1,941.00 $ 3,583.33 $ 1,440.00 $ 582,500.50 $ 14,100.00 $ 3,583.33 $ 4,000.00 $ 14,100.00 $ 992,800.00 43 MO 30 1440 $ 1,927.50 $ 3,583.33 $ 1,440.00 $ 589,451.33 $ 14,400.00 $ 3,583.33 $ 4,000.00 $ 14,400.00 $ 1,029,183.33 44 MO 30 1470 $ 1,914.00 $ 3,583.33 $ 1,440.00 $ 596,388.67 $ 14,700.00 $ 3,583.33 $ 4,000.00 $ 14,700.00 $ 1,066,166.67 Indicates breakeven date 45 MO 30 1500 $ 1,900.50 $ 3,583.33 $ 1,440.00 $ 603,312.50 $ 15,000.00 $ 3,583.33 $ 4,000.00 $ 15,000.00 $ 1,103,750.00 Indicates additonal frame purchase 46 MO 30 1530 $ 1,887.00 $ 3,583.33 $ 1,440.00 $ 610,222.83 $ 15,300.00 $ 3,583.33 $ 4,000.00 $ 15,300.00 $ 1,141,933.33 for capacity 47 MO 30 1560 $ 1,873.50 $ 3,583.33 $ 1,440.00 $ 617,119.67 $ 15,600.00 $ 3,583.33 $ 4,000.00 $ 15,600.00 $ 1,180,716.67 Amount of data on Day 1 of analysis 48 MO 30 1590 $ 1,887.00 $ 3,583.33 $ 1,440.00 $ 624,030.00 $ 15,900.00 $ 3,583.33 $ 4,000.00 $ 15,900.00 $ 1,220,100.00 49 MO 30 1620 $ 1,900.50 $ 3,583.33 $ 1,440.00 $ 630,953.83 $ 16,200.00 $ 3,583.33 $ 4,000.00 $ 16,200.00 $ 1,260,083.33 50 MO 30 1650 $ 1,914.00 $ 3,583.33 $ 1,440.00 $ 637,891.17 $ 16,500.00 $ 3,583.33 $ 4,000.00 $ 16,500.00 $ 1,300,666.67 51 MO 30 1680 $ 1,927.50 $ 3,583.33 $ 1,440.00 $ 644,842.00 $ 16,800.00 $ 3,583.33 $ 4,000.00 $ 16,800.00 $ 1,341,850.00 52 MO 30 1710 $ 9,478.08 $ 3,583.33 $ 1,440.00 $ 659,343.41 $ 17,100.00 $ 3,583.33 $ 4,000.00 $ 17,100.00 $ 1,383,633.33 53 MO 30 1740 $ 1,954.50 $ 3,583.33 $ 1,440.00 $ 666,321.25 $ 17,400.00 $ 3,583.33 $ 4,000.00 $ 17,400.00 $ 1,426,016.67 54 MO 30 1770 $ 1,968.00 $ 3,583.33 $ 1,440.00 $ 673,312.58 $ 17,700.00 $ 3,583.33 $ 4,000.00 $ 17,700.00 $ 1,469,000.00 55 MO 30 1800 $ 1,981.50 $ 3,583.33 $ 1,440.00 $ 680,317.41 $ 18,000.00 $ 3,583.33 $ 4,000.00 $ 18,000.00 $ 1,512,583.33 56 MO 30 1830 $ 1,995.00 $ 3,583.33 $ 1,440.00 $ 687,335.75 $ 18,300.00 $ 3,583.33 $ 4,000.00 $ 18,300.00 $ 1,556,766.67 57 MO 30 1860 $ 2,008.50 $ 3,583.33 $ 1,440.00 $ 694,367.58 $ 18,600.00 $ 3,583.33 $ 4,000.00 $ 18,600.00 $ 1,601,550.00 58 MO 30 1890 $ 2,022.00 $ 3,583.33 $ 1,440.00 $ 701,412.91 $ 18,900.00 $ 3,583.33 $ 4,000.00 $ 18,900.00 $ 1,646,933.33 59 MO 30 1920 $ 2,035.50 $ 3,583.33 $ 1,440.00 $ 708,471.75 $ 19,200.00 $ 3,583.33 $ 4,000.00 $ 19,200.00 $ 1,692,916.67 60 MO 30 1950 $ 2,049.00 $ 3,583.33 $ 1,440.00 $ 715,544.08 $ 19,500.00 $ 3,583.33 $ 4,000.00 $ 19,500.00 $ 1,739,500.00 61 MO 30 1980 $ 2,062.50 $ 3,583.33 $ 1,440.00 $ 722,629.91 $ 19,800.00 $ 3,583.33 $ 4,000.00 $ 19,800.00 $ 1,786,683.33 62 MO 30 2010 $ 2,076.00 $ 3,583.33 $ 1,440.00 $ 729,729.25 $ 20,100.00 $ 3,583.33 $ 4,000.00 $ 20,100.00 $ 1,834,466.67 63 MO 30 2040 $ 2,089.50 $ 3,583.33 $ 1,440.00 $ 736,842.08 $ 20,400.00 $ 3,583.33 $ 4,000.00 $ 20,400.00 $ 1,882,850.00 64 MO 30 2070 $ 2,103.00 $ 3,583.33 $ 1,440.00 $ 743,968.41 $ 20,700.00 $ 3,583.33 $ 4,000.00 $ 20,700.00 $ 1,931,833.33 65 MO 30 2100 $ 2,116.50 $ 3,583.33 $ 1,440.00 $ 751,108.25 $ 21,000.00 $ 3,583.33 $ 4,000.00 $ 21,000.00 $ 1,981,416.67 66 MO 30 2130 $ 2,130.00 $ 3,583.33 $ 1,440.00 $ 758,261.58 $ 21,300.00 $ 3,583.33 $ 4,000.00 $ 21,300.00 $ 2,031,600.00 67 MO 30 2160 $ 2,143.50 $ 3,583.33 $ 1,440.00 $ 765,428.41 $ 21,600.00 $ 3,583.33 $ 4,000.00 $ 21,600.00 $ 2,082,383.33 68 MO 30 2190 $ 2,157.00 $ 3,583.33 $ 1,440.00 $ 772,608.75 $ 21,900.00 $ 3,583.33 $ 4,000.00 $ 21,900.00 $ 2,133,766.67 69 MO 30 2220 $ 2,170.50 $ 3,583.33 $ 1,440.00 $ 779,802.58 $ 22,200.00 $ 3,583.33 $ 4,000.00 $ 22,200.00 $ 2,185,750.00 Network Bandwidth Cost Data Retreival Fee Public Cloud Total 303-449-6400 800-833-1132 (Fax) 303-939-8844 6285 Lookout Road Boulder, CO 80301 USA spectralogic.com