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Parikh said that a StorSimple solution for 50 TBs of customer production data and related backup could cost about $70,000, including all the necessary software, compared to about $375,000 for a competing solution including dedupe and other software and a tape backup system. With an estimated 20 percent extra to cover three years of maintenance for both systems, plus about $25,000 in cloud storage costs, Parikh estimated the StorSimple solution would cost a total of $187,000 vs. $600,000 for a traditional solution.
Solution providers could expect a margin of 30 percent for the hardware sale as well as 25 percent of annual cloud storage fees with StorSimple, he said. This is in addition to good margins on their capacity licenses and support services, he said.
StorSimple's channel partners are primarily traditional solution providers who sell VMware, servers, and storage, Parikh said. "Many are regional storage VARs who have not been in the cloud before, or large VARs who haven't looked at storage before," he said.