Grounded in the Cloud
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Cloud computing for business growth

TerenceNgai on ‎05-26-2011 02:18 PM

On May 25, CNBC aired a video segment on ‘Profiting on Cloud Computing’ where John Fortt, CNBC analyst, talked about the potential losers in cloud computing are companies that have dominant high margin positions that were dependent on the old model.  He cited Cisco, SAP, Microsoft, HP and Intel (on the client side) while mentioning HP’s advantage on the server side.  Yes. Business models are changing, not only for the technology titans, but also for enterprises, government and service providers. 


The primary benefit of cloud computing is not cost reduction. It’s about driving business growth, speed and agility.  Businesses can take advantage of the cloud to accelerate their revenue growth, reduce time-to-market and get one step ahead of competition. A manufacturer can optimize its supply chain and improve cash flow. A health care provider can improve the quality of service with instant access to relevant medical information. A service provider can generate more revenue by reducing time to deploy new services.  Cloud is not a matter of when, it’s now.    


Here are some interesting facts that few people know about HP: 

  • HP powers top three social media properties in the U.S. and four out five most popular search engines in the world. 
  • Seven out of 10 world’s largest cloud service providers and eight out of 10 most trafficked sites are using HP’s technology today. 


What’s unique about HP’s approach is that HP does not push businesses to choose between building their own private cloud or put their IT in the hands of an external cloud provider.  One size does not fit all.  Enterprises need to choose the right mix of sourcing strategy to meet their unique business objectives.  In fact, HP is taking a hybrid approach where enterprises can build their own cloud, if they wish, consume external cloud services, and/or manage both cloud and traditional IT environment with a single integrated management process.  It’s called a hybrid delivery model. 


HP provides scalable systems, storage, virtualization and automation tools, management software and consulting services to help customers build, manage and secure their cloud environment.  For customers who do not wish to build their own cloud, they can consume on-demand, scalable and pay per use cloud services from HP or other cloud service providers. In addition, HP provides a broad portfolio of management and security solutions to help ensure your cloud investment is protected.


What are the financial considerations? In the public cloud model, enterprises can shift capital expense to operational expense with the pay per use model without investing in equipment upfront.  In the private cloud or hybrid delivery model, businesses can reduce operations cost with automation and policy-based scale-up/scale-down practices.  Either way, businesses win.  If you’re a business that is  cash strapped or doesn’t know what to do with the aging IT assets, you may want to consider financing options and asset management services from companies such as HP to jump start your journey. Find out more about these offerings from HP at


I want to hear what you think. Does the hybrid delivery model work for you?

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