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The HP/Microsoft Economic Value Tool for Microsoft Private Cloud Solutions


There are many different features and benefits to keep in mind when thinking about Private Cloud solutions. When considering a Private Cloud solution for a customer, it is important to understand all of the options as well as and how each will affect the bottom line. The HP/Microsoft Economic Value Tool for Microsoft Private Cloud Solutions can be a helpful tool for considering a private cloud solution, often drawing attention to variables that customers may not have previously considered.


Today we will look at this tool by analyzing an example of a customer environment and a few of the conclusions found using this tool.


Enterprise Strategy Group (a third party research firm) recently conducted a poll of IT decision makers and found that customers generally consider three options when virtualizing their environment: do it yourself, reference architecture, or fully integrated. This study concluded that customers often find themselves implementing standalone hardware (not tuned specifically to work together), but would rather implement a fully integrated solution. As we look at the Economic Value Tool today, we will be considering a fully integrated solution from HP and Microsoft, specifically an HP Virtual System for Microsoft.



Customer Profile


Today’s example customer environment used the following data to complete the economic analysis:

-          100 virtual servers to start + 50 new virtual servers added each year for next 3 years

-          25% improvement in virtual to physical server ratio expected

-          12 VMs per physical host (current environment)

-          Blade Server environment

-          Workload variety: 10% heavy workload, 40% moderate workload, and 50% light workload

-          User information: 500 heavy users, 50 moderate users, and 10 light users

-          Typical annual salaries considered for IT admins and employees


Economic Value Tool Results

Based upon this customer’s data, using the Economic Value Tool we find the annual total cost of ownership (TCO) is somewhat similar, with HP/Microsoft solution being more cost effective. The most noteworthy difference comes when comparing the total Annual Benefit received using an HP/Microsoft solution compared to an alternative virtualization solution, with HP Cloud Solution for Microsoft being significantly higher.


MS annual TCO and benefit.png 


When we look closer at the breakdown of this company’s Annual Benefit, we see savings in IT efficiency, as well as user productivity improvements when comparing the HP/Microsoft solution to an alternative virtualization solution. 


These increases and improvements come from many different benefits such as the reduction in time required by IT administrators to maintain operations (therefore allowing the organization to shift resources to more mission critical projects). In addition, application downtime (a major cause of reduced user productivity) is decreased by implementing a fully integrated HP/Microsoft solution. 


annual benefit.png


This is just a quick demonstration of a few of the key variables considered and analyzed using the HP/Microsoft Economic Value Tool for Microsoft Private Cloud. For a few more results from the sample company we analyzed today be sure to watch the Coffee Coaching session above.


We hope this tool will be helpful for you and your customers who are considering a private cloud solution. For more information, you can read the white paper “Analyzing the Economic Value of HP Cloud Solution for Microsoft” or try the Value Tool out for yourself to see what other variables your customers should consider. To learn more about this tool and other HP/Microsoft tools and resources, be sure to join the Coffee Coaching community by following us on Facebook, Twitter, YouTube, and LinkedIn

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