What Does 100TB SAN Storage Really Cost?

Storage needs are growing exponentially in today's data-driven world. Enterprises, cloud providers, and even SMBs often require large-scale storage solutions to manage applications, databases, backups, and multimedia content. One of the most popular options for enterprise-grade storage is SAN (Storage Area Network) storage.

If you are considering investing in 100TB of SAN storage, it's natural to ask: What does 100TB SAN storage really cost?

This article by Go4hosting breaks down the true costs involved, helping you plan your storage investment with clarity.

1. What Is SAN Storage?

Before diving into costs, let's quickly review what SAN storage means:

• SAN (Storage Area Network) is a dedicated, high-performance network that connects servers to storage devices.
  

• It provides block-level storage accessible as if it were locally attached to the server.
  

• SANs use Fiber Channel (FC) or iSCSI protocols to deliver fast and reliable storage access.
  

• SANs are widely used in data centers for mission-critical applications due to their scalability, performance, and centralized management.
  

2. What Makes 100TB SAN Storage Expensive?

At first glance, buying 100TB of storage sounds simple-just multiply the cost per TB by 100, right? Not quite.

SAN storage cost includes several components:

a) Hardware Costs

• Disk Drives: The drives themselves (HDDs or SSDs) form the core. Enterprise-grade disks cost more than consumer drives.
  

• Storage Controllers: These manage data flow and provide features like RAID, caching, and snapshots.
  

• Network Equipment: Fiber Channel switches or iSCSI network gear to connect servers and storage.
  

• Enclosures: Chassis to house disks and controllers with redundant power supplies and cooling.
  

b) Software Licensing

• SAN management software
  

• RAID and data protection features
  

• Snapshot, replication, and backup software
  

c) Infrastructure Costs

• Rack space
  

• Power and cooling
  

• Network cabling and installation
  

d) Maintenance and Support

• Annual hardware support contracts (typically 15-20% of hardware cost)
  

• Software support and updates
  

e) Personnel and Management

• Staff to configure, monitor, and manage the SAN
  

• Training and ongoing education
  

3. Breaking Down the Hardware Costs for 100TB SAN Storage

Storage Media

• Enterprise HDDs typically cost between $80 to $150 per TB.
  

• Enterprise SSDs cost significantly more - anywhere from $150 to $400+ per TB, depending on performance.
  

For 100TB:

• Using HDDs:
  100TB * $100 (avg.) = $10,000
  

• Using SSDs:
  100TB * $300 (avg.) = $30,000
  

Note: Most enterprise SANs use a combination of SSDs (for caching) and HDDs (for bulk storage) to optimize cost vs performance.

Controllers and Enclosures

• A high-quality SAN controller with redundancy may cost between $10,000 and $30,000.
  

• Enclosures and chassis to house disks add $5,000 to $15,000 depending on size and redundancy.
  

Networking Equipment

• Fiber Channel switches range from $5,000 to $20,000.
  

• iSCSI networks may use standard switches but require high-quality network cards and cabling.
  

Total Hardware Cost Estimate

4. Software Licensing and Features

SAN solutions often include proprietary software licenses for:

• Advanced RAID levels
  

• Data deduplication and compression
  

• Snapshots and replication
  

• Backup and disaster recovery
  

Licensing can cost between 10% to 30% of the hardware price annually.

For example, if hardware costs $50,000, expect:

• $5,000 to $15,000 per year in software licensing fees.
  

5. Infrastructure and Operational Costs

Power and Cooling

• SAN equipment can consume significant power, requiring reliable cooling.
  

• Estimate power costs by wattage * hours used * electricity rate.
  

• Data centers and cloud providers like Go4hosting provide optimized environments, but if self-hosted, factor these in carefully.
  

Rack Space

• Each SAN enclosure consumes rack units (U).
  

• Rack rental in colocation can cost $50 to $200+ per U per month.
  

Networking

• High-speed networking infrastructure may require upgrades to existing data center networks.
  

6. Maintenance and Support Costs

Support contracts usually run about 15-20% of the total hardware cost annually.

For a $50,000 SAN, this means:

• $7,500 to $10,000 per year.
  

Support contracts cover:

• Hardware replacement
  

• Firmware and software updates
  

• Technical support and troubleshooting
  

7. Personnel and Management Costs

Even with the best hardware and software, managing SAN storage requires skilled IT staff.

• Salaries vary by region, but skilled storage admins can command $70,000+ annually.
  

• Smaller businesses might outsource management or use managed SAN services from providers like Go4hosting.
  

8. Total Cost of Ownership (TCO) for 100TB SAN Storage

Let�s add up an example mid-range setup:

Note: Hardware costs reduce over time but support and operational costs recur annually.

9. Alternatives to Owning SAN Hardware

Many organizations are moving towards cloud storage and managed SAN solutions to avoid upfront capital expenditure and reduce management overhead.

Cloud SAN Storage Benefits

• Pay-as-you-go pricing
  

• No hardware or maintenance responsibility
  

• Scalability on demand
  

• Managed security and backups
  

Go4hosting offers cloud-based SAN and block storage solutions, letting you access 100TB+ without huge upfront costs.

10. Conclusion

What does 100TB SAN storage really cost?

• The upfront hardware cost can range from $30,000 to $100,000+.
  

• Including software, maintenance, power, and personnel, the total cost of ownership (TCO) in the first year can easily exceed $100,000.
  

• Managing SAN storage is a complex task requiring expertise and ongoing investment.
  

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