Data Storage and Retrieval in Russia; ROGTEC Talks Exponential E&P Data Growth with the Industry Leaders

David Sullivan — Managing Director of Geotrace Data Integration Services Ltd

Alexander Yakovlev — Product Manager, RISC/UNIX servers and storage, Fujitsu Technology Services

Vladimir Zykov — Product Sales Specialist StorageWorks Division, HP Russia

Thomas N. Keller — President of Iron Mountain in Russia

What is the current condition of the data storage and retrieval sector in Russia? What changes are required?

David Sullivan: The storage and retrieval sector in Russia is still characterised by warehouse style storage spread across this vast nation. Over time, some organisations have transcribed the original format data into more modern and durable media (3590, 3592, LTO-4 etc.) and scanned sections and film to produce digital archives. Other organisations have created automated near-line and on-line data management systems. Russia, like its competitors, needs to move to contemporary data storage and retrieval sector focused on smaller data centres, using modern media, on-line storage and with the focus on quality and availability. More controversially, once the data is converted to the new systems and quality assured the original format data should be destroyed.

Alexander Yakovlev: Due to significant IT budget cuts and restrictions, the sales of large solutions and high-end class disk arrays dropped down in the first quarter. Resources were reallocated and some projects that initially were planned as high-end projects were downgraded to middle class systems. Data growth rates have remained the same as before the downturn, and as such sales of disk arrays in the middle class segment did not change much, and indeed even grew in SMB sector. This can be explained one hand by budget cuts, and on the other hand by significant performance and functionality enhancements of SMB disk arrays. For example, in our recently announced entry-level disk storage there are a number of hardware solutions that were previously available only in middle — and high-end segments.

Vladimir Zykov: For the most part Oil & Gas companies buy Low-end and Mid-range systems. There are some transitions to higher level Mid-Range and Hi-end models in some of the regional centers and large research facilities, accompanied by new technologies, specialized storage systems and hierarchical storage. All in all O&G is pretty much in line with current trends in storage industry.

Thomas N. Keller: Present conditions of oil and gas energy data storage are very fragmented and de centralized. There are significant amounts of energy data (with huge replacement cost and valuable commercial application) which is improperly stored, poorly catalogued, and has no back up or replacement. In short, most major energy companies do not have a centralized policy for storage of key data and an authorization system for its retrieval. It’s mostly held with subcontractors and contracted providers.

The region is seeing exponential data growth across all sectors, is there a risk that future valuable data assets will be lost because of inadequate storage capacity?

David Sullivan: Russia has always placed great emphasis on the national interest value of exploration and production data. However, here, as in all other oil provinces, valuable data assets are regularly lost because of inadequate storage capacity (and techniques). The near exponential growth of E&P data in the Russian Federation will mean that more modern storage conditions, together with more technically advanced and effective data management techniques, will be mandated. Availability of appropriate quality assured data to the exploration community will be a key factor for success in the ongoing development of the Russian oil and gas business. Certainly, modern 3D surveys create much more data by volume. But these surveys use advanced, more durable media. The cost of the survey means that the client tends to take care of this valuable purchase (at least in post stack form). However, most of our knowledge of the world’s hydrocarbon bearing rocks, by area and most of our understanding of the history of our oil and gas fields comes from 2D seismic surveys, traditional well data, maps and historical reports. This will be the case for many years. These are the invaluable data sources whose value is constantly denuded by inadequate data management — both in terms of the physical condition of the media and availability of the data.

Alexander Yakovlev: Even with a cut in IT budgets, a skilful management should be able to avoid the loss of critical data. On the one hand, a number of solutions for information life-cycle management and managed services, and on the other the use of cutting edge storage technologies that allow the user to store substantial volumes of information a cheaper cost. A good example of this are Nearline SAS (NL-SAS) hard drives, that give big advantages in performance and reliability of SAS interfaces and in the near future will have a capacity of 2 TB.

Vladimir Zykov: If the storage systems implementation lifecycle in companies is reduced from the current 10-12 months to 5-6 months, taking into account the arrival of new storage technologies along with bigger disk drive capacities there should be no such risks. HP already provides several storage solutions to the Russian market which combine low cost with high performance and storage volumes. Also, implementation of the Hi-End storage systems will allow for capacity reserves for some of the customers tasks.

Thomas N. Keller: Yes there is a large risk of this but we feel many of the companies are beginning to realize this and develop solutions to handle this. However, most companies have yet to make the key distinction between key «live» data and important historical data (the key difference being access speeds, and authorization levels). In many cases they are over engineering solutions which are costly and unnecessary

With large legacy systems existing in Russia, is there an urgency to modernise the solutions the operators are using?

David Sullivan: At first glance, it is much less expensive and requires far fewer resources just to preserve the status quo. To progress we need to adapt and to innovate. The large legacy systems need to be consolidated into small units with modern media and high levels of accessibility. Unfortunately, data management is often regarded as an expense rather than an opportunity. Conventional accounting techniques show only what we have spent on the storage, rent, utilities, transport etc. No account is taken of the opportunity cost of the delay in producing hydrocarbons resulting from inadequate data management. Replacing a traditional warehouse-based system with a modern and effective data management regime provides oil and gas companies with an effective, strategic tool at the core of their business. Therefore, there is a compelling and urgent need to modernise the solutions in use by Russian operators.

Alexander Yakovlev: If we compare, for example, with western markets, Russia does not have so many inherited systems. It gives us a number of advantages — customers are ready to implement modern technologies much more actively that allow a significant rise in efficency. Thanks to the virtualization of tape media we offer increased speed and performance of the back up and copy process to the tapes in very diverse environment, including back up copying from mainframes to modern LTO-4 devices.

Vladimir Zykov: There is no need to modernize such legacy systems; the system will have to be replaced instead. Legacy systems usually have no means for integration between themselves and a new IT system. Small vendors that initially provided these solutions often do not exist anymore and system support is provided by the companies own IT staff. However, many of the old systems are still in line. New systems are being bought for the new tasks. In some companies old systems are being transferred to the branch offices that do not require high storage capacities or performance, so as to maximize efficiency. Later these systems are being utilized, according with companies hardware lifecycle policies. So there is no urgency as such.

Thomas N. Keller: Not really. There is a large need to inventory the key data and categorize it according to its creation, usefulness, and access levels. Operators then have to upgrade legacy systems, as needed, rather then «across the board». Selective protection (using proper data vaults and so forth) can eliminate the need for large-scale modernization of legacy formats. Data can then be used «on demand» which results in significant cost savings. Note however that much of the older seismic data needs urgent categorization, quality control, and modernization to new formats.

What is the level of accessibility to archived data within the regions oil companies?

David Sullivan: Accessibility is entirely dependent on the system in use by the company. Generally, if the data is managed using a legacy warehouse type-environment, where original media is requested, both response times and accessibility are generally poor. This is exacerbated where the data needs extensive QC, improvement and format conversion before it is workstation ready. There are a great many data sets throughout Russia that could be regarded as highly inaccessible. Where the data owner has implemented a digitisation and re-mastering project, accessibility is improved, particularly if the system has a near- line or on-line component. Integrated digital data management systems, either in-house or using a reputable third-party system, improve matters further.

Alexander Yakovlev: At the same time with complex multilevel content storage todays market offers WORM technology (Write Once Read Many) that allows the creation of an archive on special LTO standard tapes. Therefore we have the possibility to create a tape with an unchangeable archive copy of the data in a small tape library. If we have, for example, two writing devices in the tape library we have the possibility to create one ordinary tape and one WORM tape for long-term archive. This technology has enabled the access of archived data not only from the headquarters, but also in branch offices.

Vladimir Zykov: Not every company can allow itself to store a few years of archive data online on the disk storage system. And the accessibility level for archive data is not very high. Data archiving systems are not implemented in lots of cases. It might be impossible to restore data from the archive, because there is often no archive copy at all. Usually this happens because there is no archiving process in place, or if it is present, is poorly implemented, not automated and prone to human errors.

Thomas N. Keller: In our experience it’s poor or non-existent. Often the original source data resides not with the owner of the data but a sub contractor. The subcontractor does not inventory the data and has no real incentive or systems to catalogue it for its client. The real end user, the oil field specialist, often has no access or idea what resources are available to him/her. This is where the real money is made or lost.

Data protection has always been a concern — what can the operators and data centres do to ensure data security and their legal requirements?

David Sullivan: By storing data in remote physical stores and distributing interpretations across systems spread right across this vast country, we often create an environment that is susceptible to security breaches When we were designing our own system, we recognised the need to produce a system that would give data owners ultimate security over their valuable data asset, yet provide controlled and convenient access to authorised users. In addition to secure, convenient access ,it is also extremely important to automatically monitor the use of the data asset — both to ensure that there are no security breaches and to add to the knowledge of the data’s provenance. The Ministry of Natural Resources, tax authorities, regional administrations and a host of others mandate regular filings relating to a wide variety of exploration activities across the entire asset life cycle. Once again, the concept of a warehouse-based store or archive is entirely inappropriate for this purpose. By migrating to an integrated digital data management system, we can produce a more effective and less expensive statutory reporting system. Digital data integration systems, not only enhance security and make short work of complying with statutory reporting obligations, they enable the data owner to manage their assets in real-time. Thus the latest digital oilfield techniques, usually only used on the most capital intensive of fields can be applied to the smallest, remotest asset, at minimum cost.

Alexander Yakovlev: As with any complex goal, the problem of data integrity and security must have complte solution on both soft and hardware level, and, probably the most importantly on organizational level. Competent use of modern entry and middle class solutions allows the user to decrease the possibility of hardware data loss to very low level. For example, in our recently announced entry level disk arrays, ETERNUS DX60/80, along with snapshots, it is possible to create full clones, internal and remote data replication. I would like to emphasize that all these functions are embedded into the entry level systems. So, if the process of back up copying and information life cycle management are organized properly, and in conjunction with modern storage functionality it is possible to build a highly reliable configuration even when using entry level systems.

Vladimir Zykov: Actually, I would class this question is a continuation of the previous one. Of course there have to be means for data backup and archiving in the company’s data center. Also, IT departments have to have a data protection strategy and have to work according to the SLAs for the different types of data: operational, archives, backup, etc. At HP we can help here by providing an integrated solution for all types of customer data, along with the monitoring and management tools for the data itself and for the storage infrastructure as well.

Thomas N. Keller: There is a fine line between security and paranoia. Our strong suggestion is to benchmark with others in the industry.

In today’s climate with operators looking to cut cost across all sectors of operations — describe the solutions you can offer to help them achieve this goal, especially as data management can be viewed as a spiralling cost for the owner.

David Sullivan: Silo-based data archiving belongs in the dark ages, exploration data is the very stuff hydrocarbon discoveries are made of and it is high time we recognised its importance. In fact, such projects not only assist the exploration process, the scanning, digitisation, re-mastering and re-cataloguing activities associated with their implementation drive down traditional data administration costs. Storage area is vastly reduced, outmoded media can be discarded and transport costs virtually eliminated. Also, given that traditional storage costs are annually recurring the project will go on saving money for many years to come.

Alexander Yakovlev: One of the ways of cost reduction during constant growth of stored data is the concept of managed storage services. We offer «Managed server» and «Managed storage». These solutions allow the creation of private «cloud» storage which allows the user to utilize the advantages of storage and computing supported by the cloud computing technologies, and at the same time to avoid a number of vulnerabilities inherent to this concept. Managed services will take into account all the specifics of the customer’s IT infrastructure, will meet customer’s business needs and will allow the system to be scalable and flexible depending on the situation.

The necessary conditions for successful integration of the managed DDC are clear definitions and service level agreements. It also important for optimization, because both a lack, or indeed excess of services can cause the system to be ineffective. Consequently, the first step is to analyze the demands and their requirement of service level agreement (SLA) including goals, roles, reaction and restore time limits. Such agreements are the basis of cooperation between the service provider and the customer’s IT department. For example, SLAs of Fujitsu Technology Solutions define the components of operation (e.g. storage devices, mail servers and print servers), processes of back up copying and restoration, and the management of all IT services for the centralized network and system management platform. These clear interfaces allow the management of DDC operation fully or partly, and the customer does not lose the general understanding of the levels of quality and cost of the managed services. IT departments do not need well paid professionals in their headcount. The goal is to use the resources when they are necessary and not to pay when they are not neccesary. As a service provider we can offer a high level of flexibility to give additional advantages to our customers. Thus, a managed DDC of Fujitsu Technology Solutions gives the choice between our customers own activities and placement of DDC outside of the company providing the necessary services.

Vladimir Zykov: These are the solutions, specially developed by HP to provide high user value with low TCO. We are continuing to improve our midrange systems such as the HP StorageWorks EVA x400 series, which are, according to the Edison Group whitepaper the easiest to manage among similar class storage systems. At the beginning of this year we announced a new storage appliance, HP StorageWorks ExDS 9100, which provides exceptional storage density per sq.m. of data center floor, combined with low cost per TB of data and highly scalable performance, and delivers access to different types of data, i.e. geological, via many file access protocols: NFS, CIFS, FTP, HTTP, etc. For the remote offices and regional branches we promote inexpensive HP LeftHand P4000 SAN solutions, which are based on the iSCSI and do not require costly FC SAN implementation and staff training. As for the storage backup solutions we provide traditional tape libraries along with virtual libraries such as HP StorageWorks VLS, that allow the user to store vast amounts of data with high speed access, thanks to new deduplication technology.

Thomas N. Keller: Iron Mountain (IM) is the global leader in the storage and protection of energy data. It’s all we do around the world. We are able to assess problems and outline solutions which are safe, secure, redundant, allow access control, and cost effective. We have industry specific software (and solutions), which allows companies to move data from a spiraling cost to a productive asset.

How do you see the future of the storage and retrieval sector in Russia and the CIS?

David Sullivan: Russia has always regarded exploration and production data as being important to the national interest. Consequently, it understands very well the need for secure, strategic management of these assets. As such, I expect that Russian organisations will wish to exploit the opportunities that the new technologies afford. Specifically, I see a trend for removing data from remote warehouse locations, re-mastering to modern formats and relocating to state-of-the-art integrated digital data management systems. The reduction in bulk means that these centres can often be located at the company’s headquarters with a security copy stored at another secure location. Where the company is involved in operations around the world, these integrated digital data management systems can be distributed, allowing access to the data in the partner country as if it were in Moscow. In addition, I see a trend towards integrating the integrated digital data management with the wider exploration lifecycle. These modern systems need to be able to communicate with modern workstation formats and supply data to them and receive data from them rather like an automated digital librarian, recording the transaction and maintaining an audit trail of how these data have been used. These systems will also be integrated with the regulatory authorities, meeting the statutory reporting obligations of the oil and gas company.

Vladimir Zykov: Russia and CIS companies are moving in the same direction as the rest of the world. We can expect to see rapid development of SAS technologies, continuation of the FC and iSCSI SANs development. Oil & Gas companies will continue to mlargely purchase Mid-range systems that will be based more and more on the industry standard components. Hi end systems will be implemented for specific «heavy» tasks like SAP and the like.

Thomas N. Keller: Clearly the key data will be created and stored near the energy production. Therefore we will have to move our vaults, people and expertise to the regions and keep working with our customers to save them money and increase the security of their data. Further in Russia there is a strong assumption that data needs to be in house to be compliant with Russian law and internal company regulations. This is simply not true. We see this changing but it will take time and experience for companies to try and fail to manage data themselves. We see many of our clients now outsourcing «trial» parts of its data storage to IM so they can verify the process and manage costs.

What are the key issues for data storage and accessibility, in terms of workf low optimisation and maximising E&P decision making? What can you offer to overcome these issues?

David Sullivan: Accessibility is key. If explorers are unable to access data when required, the value of that data is lost. Modern exploration and production specialists need high quality, workstation-ready data on demand. The challenge is to meet this need in a cost effective manner, while ensuring the company’s precious data asset remains secure. We believe passionately that the effective use of exploration and production data is at the very heart of the exploration task. We can create a real time, integrated digital management system that enables companies to make the very most of every data acquisition Rouble.

Our approach can streamline the exploration process, and deliver incredible efficiency savings. Regulators, including government and national oil companies, can ensure their data is managed strategically, ensuring that the national interest is properly served. All stakeholders can have a much more informed view of the potential of their hydrocarbon assets. We have created a suite of state-of-the-art products supported by the best people to make this happen. Our team is based in Tyumen at the heart of the Russian oil and gas business and has vast experience of this type of project.

Vladimir Zykov: Currently storage systems are used not only in the context of traditional IT infrastructure — for database data, financial systems data, but also as a storage for industrial process automation solutions such as SCADA, exploration, geological data and so on. On this base of data silos corporate data warehouses are being built that allow the user to analyze, forecast and get additional value from stored data. No company in O&G sector in Russia currently has such a solution implemented in full scale. However, everyone is moving in this direction, with different rates of success. Difficulties that occur are more administrative, such as problems in communication between departments of merged company. It may also be a technical problem because of the different and incompatible data formats. To solve this HP provides specialized solutions for the O&G industry together with our partners: Schlumberger, ROXAR, Landmark, SGG, SAP.

Thomas N. Keller: In our opinion, this means making sure the key energy data is used by the people who need it most. We so often see that data storage is a black hole where nothing ever comes out. Our solutions put data at the desktop where field people who need the access can have in within seconds. This is a complete process of identification of key data assets, storage and digitizing of key assets, and setting proper access levels for usage.

Any final comments?

David Sullivan: We encourage you to consider how this approach could benefit your organisation. Please visit us www.geotrace.com/products/tigress.html (Russian & English) or mail sales@geotrace.com for more information.

Thomas N. Keller: In addition to state of the art data vaults and data migration from older formats, we offer a multilanguage asset management system called «eSearch» which was designed with today’s large-scale energy company in mind. It manages data in terms of location, description, access control, and allows full track and trace of all assets. It’s scaleable and working in a number of major Russian energy companies to manage large amounts of key data. From the archive to the desktop! Find more on eSearch at: http://www.ironmountain-esearch.com/