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Nexenta Finds U.S. Federal Departments Overspending on Data Storage

Nexenta® Systems, the world leader in Software-defined Storage, today announced the results of its research into public sector spending on legacy storage giants EMC and NetApp. Since 2001, the U.S. Federal Government has awarded at least $1,234,842,449 in non-classified contracts to these legacy storage vendors, who lock in customers with proprietary systems that are subject to costly and inconvenient price hikes. Because Nexenta’s Software-defined Storage solutions can save 60-70 percent over time versus legacy systems, the non-classified portions of the U.S. Federal Government could have saved at least $493,936,979.60 by switching to Software-defined Storage solutions such as Nexenta’s. Total potential savings, from classified and non-classified programs, are estimated to exceed $1 billion annually.

“With the looming fiscal cliff and assorted federal budget challenges ahead, U.S. agencies are paying much closer attention to cost-effective IT solutions across the board,” said Jonathan Spalter, former CIO of the United States Information Agency. “This includes the trend towards software-defined next-generation storage solutions, which are significantly reducing costs on a critical top line item in most CIO budgets.”

Nexenta’s findings indicate that the federal information technology procurement practices are not in accordance with public commitments to reduce costs and increase competition -- especially given the proliferation of new storage vendors and technologies that have entered the market in recent years. At $0.40 per gigabyte (see “New Options for Low-Cost Storage Systems” Gartner report at: http://bit.ly/gartner-nexental-lowcost), the cost of storing data with proprietary EMC or NetApp technologies is up to three times more than for higher performance, open alternatives.

“Federal IT managers preparing for Big Data while facing potential across-the-board budget cuts urgently need more cost-effective and innovative alternatives to the storage strait-jacket of last-generation, inflexible and expensive legacy solutions such as EMC’s and NetApp’s,” said Evan Powell, CEO, Nexenta Systems. “Nexenta’s Software-defined Storage vision is a demonstrably more cost-effective, scalable and adaptable solution for keeping our nation’s information safe and available.”

An increasing number of private- and public-sector organizations are saving substantial sums by embracing Software-defined Storage, including the U.S. Army, KT (Korea Telecom), the U.S. Department of State, the National Institute of Standards and Technology (NIST), the Federal Emergency Management Agency, the Federal Bureau of Investigation, NOAA, several U.S. National Labs, LeaseWeb and Budd Van Lines. More successful Nexenta customers can be found at: http://nexenta.com/corp/case-studies.

Nexenta’s original research found the following:

EMC Corporation

Since 2001, EMC Corporation has been awarded $850,311,037 in 3,626 awards by the U.S. Federal Government.

EMC’s five largest federal buyers, by dollars awarded, include:

  • Department of Defense ($409 million)
  • General Services Administration ($145 million)
  • Social Security Administration ($126 million)
  • Department of Justice ($24 million)
  • Department of Commerce ($19 million)


Since 2001, NetApp has been awarded $384,531,412 in 1,928 awards by the U.S. Federal Government.

NetApp’s five largest federal buyers, by dollars awarded, include:

  • Department of Defense ($717 million)
  • Department of State ($57 million)
  • Department of Homeland Security ($20 million)
  • Department of Health and Human Services ($19 million)
  • Securities and Exchange Commission ($18 million)


Nexenta Systems conducted research on USASpending.gov and submitted Freedom of Information Act (FOIA) requests to the U.S. Departments of Homeland Security, Treasury and State, as well as the U.S. Army, Marines and Air Force.

Tweet This: @Nexenta releases #federal #storage research: departments overspent by $500 million since 2001: http://bit.ly/YeCRIf

About Nexenta Systems:

Nexenta Systems is the world leader in Software-defined Storage. Its flagship software-only platform, NexentaStor, delivers high-performance, ultra-scalable, cloud- and virtualization-optimized storage solutions. Built upon ZFS technology, and running on industry-standard hardware, NexentaStor eliminates vendor lock-in and provides open, unified storage management at less than half the cost of legacy systems.

More information about Nexenta Systems, and free trials of the ZFS-based NexentaStor, can be found at www.nexenta.com or by calling (855) 639 3682. Partners selling NexentaStor-based hardware/software appliances can be found at: www.nexenta.com/partners.

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