October 9, 2025

Jim Gallagher's Enterprise AI Pipeline - Part 3: Storage Architecture

Why Traditional Storage Fails AI Workloads

JetStor CEO Jim Gallagher exposes the storage architecture crisis in AI. Discover why traditional systems can't feed modern GPUs and how to build cost-effective, high-performance storage that actually works.

The Day Your Storage Became Obsolete

It happened sometime between 2012 and 2022. The exact date doesn't matter. What matters is that your storage architecture - the one that faithfully served your databases, VMs, and file shares - became fundamentally incompatible with modern workloads.

Here's the proof:

The Workload Revolution Nobody Planned For

Traditional Enterprise Storage (Designed 1990-2010):

  • Read/Write Ratio: 80/20
  • File sizes: KB to MB
  • Access pattern: Random
  • Performance metric: IOPS
  • Growth rate: 20-30% annually
  • Cost sensitivity: Low (IT budget was assumed)

AI Workloads (Reality 2020-2025):

  • Read/Write Ratio: 50/50 (training) or 95/5 (inference)
  • File sizes: GB to TB
  • Access pattern: Sequential AND random
  • Performance metric: Throughput AND IOPS AND latency
  • Growth rate: 200-300% annually
  • Cost sensitivity: Extreme (competing with cloud)

Your storage vendor never mentioned this shift. Wonder why?

Why Traditional Storage Fails AI: The Physics

The Bandwidth Starvation Problem

Let's do the brutal math:

Modern GPU Cluster (8x A100 GPUs):

  • Memory bandwidth per GPU: 1.6TB/s
  • Aggregate GPU memory: 640GB
  • Time to exhaust GPU memory: ~0.4 seconds
  • Required storage feed rate: 40GB/s minimum

Traditional Enterprise SAN:

  • Theoretical peak: 16GB/s
  • Real-world sustained: 8-10GB/s
  • Under mixed workload: 4-6GB/s
  • GPU utilization: 15-25%

You just spent $200,000 on GPUs to use 25% of their capacity. Congratulations.

The IOPS Trap

Traditional storage vendors love to talk about IOPS. "Our system delivers 1 million IOPS!" Sounds impressive. Here's why it's meaningless for AI:

Training Large Language Models:

  • Typical file: 100GB checkpoint
  • IOPS needed: Who cares?
  • Throughput needed: 10GB/s sustained
  • Traditional SAN: Optimized for wrong metric

Inference at Scale:

  • Batch size: 100-1000 requests
  • Need: Consistent low latency
  • Traditional SAN: Inconsistent under load
  • Result: P99 latency spikes that kill user experience

The Real Performance Requirements

Stop asking vendors for speeds and feeds. Start asking for these metrics:

Metric Minimum Optimal Why It Matters
Sequential Read10GB/s40GB/s+Feeding data pipeline
Sequential Write5GB/s20GB/s+Checkpoint saves
Sustained for30 min4+ hoursReal training runs
Concurrent streams832+Distributed training
Metadata ops/sec10K100K+Small file handling
For Training Workloads: Focus on sustained throughput and concurrent access
Metric Minimum Optimal Why It Matters
Random Read IOPS50K500K+Model serving
P50 Latency<10ms<1msUser experience
P99 Latency<100ms<10msSLA compliance
Concurrent clients1001000+Scale requirements
Cache hit ratio70%95%+Economics
For Inference Workloads: Focus on low latency and high IOPS
Metric Minimum Optimal Why It Matters
Snapshot creation<1 min<1 secExperimentation speed
Clone speed100MB/s1GB/s+Environment creation
Namespace isolationRequiredRequiredMulti-tenancy
Quota managementBasicGranularResource control
For Development/Experimentation: Focus on agility and isolation

The Storage Hierarchy That Actually Works

Forget the vendor's "all-flash everything" pitch. Here's the economically rational approach:

Tier 0: GPU Memory (Most Expensive)

  • What goes here: Active batch being processed
  • Size: 40-640GB per node
  • Cost: $50,000/TB
  • Speed: 1.6TB/s
  • Duration: Seconds

Tier 1: Local NVMe (Training Cache)

  • What goes here: Active dataset, shuffle buffer
  • Size: 2-8TB per node
  • Cost: $500-1000/TB
  • Speed: 7GB/s per drive
  • Duration: Hours to days

Tier 2: Shared NVMe Pool (Hot Data)

  • What goes here: Current projects, recent checkpoints
  • Size: 100-500TB total
  • Cost: $200-400/TB
  • Speed: 40-100GB/s aggregate
  • Duration: Days to weeks

Tier 3: SSD Pool (Warm Data)

  • What goes here: Last month's data, model zoo
  • Size: 1-10PB
  • Cost: $100-200/TB
  • Speed: 10-40GB/s aggregate
  • Duration: Weeks to months

Tier 4: HDD Pool (Cold Data)

  • What goes here: Historical data, compliance archives
  • Size: 10-100PB
  • Cost: $30-50/TB
  • Speed: 1-10GB/s aggregate
  • Duration: Months to years

Tier 5: Object/Tape (Frozen Data)

  • What goes here: Rarely accessed archives
  • Size: Unlimited
  • Cost: $5-20/TB
  • Speed: Hours to retrieve
  • Duration: Years

The key insight: Data flows down tiers automatically. You're not managing this manually.

The Architecture Patterns

Pattern 1: The "Pure Storage Special" (What Not to Do)

Everything → All-Flash Array → GPUs

           ↓

        $2000/TB

        Vendor lock-in

        50% utilization

Why companies do it:

  • One throat to choke
  • CYA purchasing decision
  • Vendor wine and dine

Why it fails:

  • 10x more expensive than needed
  • Doesn't scale linearly
  • Proprietary everything

Total 3-year TCO for 1PB: $6-10 million

Pattern 2: The "DIY Disaster"

Ceph/GlusterFS → Commodity servers → Hope

                ↓

             No support

             80% time on infrastructure

             Random failures

Why companies do it:

  • "It's free!"
  • "We have Linux experts"
  • "How hard can it be?"

Why it fails:

  • Free software, expensive engineers
  • No SLA when training breaks at 2 AM
  • Performance never quite right

Total 3-year TCO for 1PB: $2-3 million (plus opportunity cost)

Pattern 3: The "Intelligent Middle Path"

Applications

     ↓

Intelligent Data Placement

     ↓

┌────────────────────────────┐

│ Parallel File System Layer │

│   (Lustre/BeeGFS/GPFS)    │

└────────────────────────────┘

     ↓

┌────────────────────────────┐

│ Software-Defined Storage   │

│   (ZFS/BTRFS/Commercial)   │

└────────────────────────────┘

     ↓

Mixed Media Infrastructure:

├── NVMe: 10% (hot)

├── SSD: 30% (warm)  

└── HDD: 60% (cold)

Why it works:

  • Right storage for right data
  • No vendor lock-in
  • Linear scaling costs
  • Professional support available
  • Ecosystem flexibility

Total 3-year TCO for 1PB: $800K-1.5M

The Vendor Landscape: A Buyer's Guide

Tier 1 Vendors (The Luxury Tax)

Pure Storage, NetApp, Dell EMC, HPE

  • Pros: It works, full support, nobody gets fired
  • Cons: 3-5x price premium, vendor lock-in, proprietary everything
  • Real cost: $1500-2500/TB
  • Hidden costs: Expansion only through them, support contracts, feature licenses
  • Best for: Unlimited budgets, regulatory requirements, political safety

When they make sense: Your board member is on their board.

Cloud Storage (The Convenience Trap)

AWS EBS/FSx, Azure ANF, GCP Filestore

  • Pros: No capex, instant provisioning, managed service
  • Cons: Egress charges, unpredictable costs, latency
  • Real cost: $200-400/TB/month plus egress
  • Hidden costs: Data transfer, API calls, cross-region charges
  • Best for: Burst capacity, dev/test, truly elastic workloads

The gotcha: One customer's monthly AWS bill went from $30K to $180K when they started training. The culprit? Egress charges.

Open Source (The Time Sink)

Ceph, GlusterFS, MinIO, OpenEBS

  • Pros: "Free", complete control, community support
  • Cons: You are the support, complex at scale, performance tuning hell
  • Real cost: 2-3 FTEs to manage properly
  • Hidden costs: Downtime, slow performance, engineer burnout
  • Best for: Companies with more time than money

Reality check: "Free" software running on $100K hardware managed by $200K engineers isn't free.

The Ecosystem Players (The Sweet Spot)

Companies that integrate best-of-breed components

  • Pros: Price/performance optimized, vendor flexibility, standards-based
  • Cons: Not the biggest brand, may need integration work
  • Real cost: $200-600/TB
  • Hidden costs: Minimal if standards-based
  • Best for: Pragmatic buyers wanting enterprise features without enterprise markup

The recognition test: If they say "we work with everyone" instead of "only buy our drives" - you've found an ecosystem player.

Building for Real-World AI Workloads

Case Study: Computer Vision Pipeline

Workload characteristics:

  • 100TB raw images
  • 8K resolution frames
  • Real-time augmentation
  • 50 data scientists accessing

What failed (Tier-1 NAS):

  • Bottleneck at 2GB/s
  • GPUs at 20% utilization
  • 6-hour training runs

What worked (Parallel FS on mixed media):

  • 40GB/s sustained throughput
  • GPUs at 85% utilization
  • 90-minute training runs
  • 70% lower TCO

Architecture:

Data Scientists → 100Gb Network → Parallel FS

                                      ↓

                               ┌─────────────┐

                               │   NVMe Tier │ 100TB

                               │  (Active)   │

                               └─────────────┘

                                      ↓

                               ┌─────────────┐

                               │   SSD Tier  │ 300TB

                               │   (Recent)  │

                               └─────────────┘

                                      ↓

                               ┌─────────────┐

                               │   HDD Tier  │ 1PB

                               │  (Archive)  │

                               └─────────────┘

Case Study: LLM Training Factory

Workload characteristics:

  • 10TB text corpus
  • Continuous retraining
  • Checkpoint every 30 min (2TB)
  • Must never lose work

What failed (Cloud storage):

  • Checkpoint saves: 45 minutes
  • Lost 8 hours of training to failures
  • $40K monthly storage bill

What worked (On-prem with cloud backup):

  • Checkpoint saves: 3 minutes
  • Local snapshots every 5 minutes
  • Async replication to cloud
  • $8K monthly total cost

The Checkpoint/Recovery Strategy Everyone Forgets

Your model just trained for 72 hours. It's 3 AM. The training crashes. What now?

The Nightmare Scenario

Without proper checkpointing:

  • Lost: 72 hours of compute ($50K)
  • Lost: 72 hours of time (competitor advantage)
  • Lost: Data scientist sanity (priceless)

The Bulletproof Approach

Requirements from storage:

  • 10GB/s write burst for checkpoints
  • Atomic snapshots
  • Instant rollback capability
  • Multi-site replication

The Performance Testing Playbook

Don't trust vendor benchmarks. Here's how to test what matters:

The Real Benchmark Suite

bash

# Test 1: Sustained Sequential Read (Training)

fio --name=training --rw=read --bs=1M --size=100G \

    --numjobs=8 --time_based --runtime=600

# Test 2: Checkpoint Write (Burst)

fio --name=checkpoint --rw=write --bs=1M --size=10G \

    --numjobs=1 --fsync=1

# Test 3: Random Read (Inference)

fio --name=inference --rw=randread --bs=4K --size=10G \

    --numjobs=32 --iodepth=64

# Test 4: Mixed Workload (Reality)

fio --name=mixed --rw=randrw --rwmixread=70 --bs=1M \

    --size=100G --numjobs=16 --time_based --runtime=3600

What to measure:

  • Performance under sustained load (not burst)
  • Consistency (standard deviation matters)
  • Performance with full capacity (not empty array)
  • Multi-tenant scenarios

The Questions Vendors Hate

  1. "What's the performance at 80% capacity?"
  2. "What's the rebuild time for a failed drive?"
  3. "Can we use third-party drives?"
  4. "What features require additional licensing?"
  5. "Show me the performance under mixed workloads"
  6. "What's the real cost to expand by 100TB?"
  7. "Can we migrate to a different platform later?"

If they won't answer these, run.

The Economics of AI Storage

The True Cost Calculation

Stop comparing $/TB. Here's what actually matters:

Total Cost per Training Run:

Cost = (Infrastructure $/TB × Dataset Size) +

       (Compute $/hour × Training Hours) +

       (Engineer $/hour × Setup/Debug Hours) +

       (Opportunity Cost of Delays)

Example with real numbers:

Option A: Premium All-Flash

  • Storage: $2000/TB × 100TB = $200K
  • Training time: 24 hours (50% GPU util)
  • Compute cost: $10/GPU/hour × 8 GPUs × 24h = $1,920
  • Engineer time: Minimal (it works)
  • Total per run: $1,920 + amortized storage

Option B: Optimized Mixed Media

  • Storage: $400/TB × 100TB = $40K
  • Training time: 12 hours (85% GPU util)
  • Compute cost: $10/GPU/hour × 8 GPUs × 12h = $960
  • Engineer time: Minimal (it works)
  • Total per run: $960 + amortized storage

Option C: DIY Storage

  • Storage: $100/TB × 100TB = $10K
  • Training time: 36 hours (30% GPU util, failures)
  • Compute cost: $10/GPU/hour × 8 GPUs × 36h = $2,880
  • Engineer time: 20 hours debugging = $2,000
  • Total per run: $4,880 + amortized storage

Over 100 training runs, Option B saves $300K vs Option A and actually works vs Option C.

The Future-Proofing Checklist

Before you sign that PO:

Scalability

  • Can you 10x capacity without forklift upgrade?
  • Does cost scale linearly or exponentially?
  • Can you scale performance independently of capacity?

Flexibility

  • Can you use different drive vendors?
  • Can you mix NVMe, SSD, and HDD?
  • Can you change data protection schemes?
  • Can you integrate new protocols (NVMe-oF)?

Compatibility

  • Works with your existing network?
  • Supports your required protocols?
  • Integrates with your orchestration (K8s)?
  • No proprietary lock-in?

Performance

  • Meets today's workload requirements?
  • Has headroom for tomorrow's?
  • Performance guarantees in writing?
  • Real benchmarks with your data?

Economics

  • TCO calculated over 5 years?
  • Includes operational costs?
  • Expansion costs understood?
  • No hidden licensing fees?

The Decision Framework

Here's your storage decision tree:

Budget > $2M for 1PB?

├── No → Ecosystem approach (best price/performance)

└── Yes → Requirements simple?

         ├── No → Ecosystem approach (flexibility)

         └── Yes → Political pressure?

                   ├── No → Ecosystem approach (value)

                   └── Yes → Buy tier-1 (CYA)

The Bottom Line

AI storage isn't traditional storage with more capacity. It's architecturally different. The companies winning at AI have figured this out. They're not buying the most expensive storage or the cheapest - they're buying the right storage.

That means storage that can actually feed their GPUs, handle their checkpoint saves, serve inference at scale, and do it all without requiring a second mortgage on the building.

The sweet spot isn't at the top of the market (Tier 1 OEM) or the bottom (DIY OSS). It's in the intelligent middle - enterprise-grade reliability without enterprise-grade markup, ecosystem flexibility without DIY complexity.

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