Converged Data Center Infrastructure
cancel
Showing results for 
Search instead for 
Did you mean: 

What’s the best cloud model for your business? Think strategically.

Chris Purcell

 

hybridit-100741477-large.jpgSuccessful enterprises understand that a powerful business strategy leverages technology to drive innovation. Yet in the race to embrace digital transformation, enterprises are hopping on the public cloud without fully understanding how different cloud models fit different IT needs.

In his BriefingsDirect Voice of the Analyst podcast series, Dana Gardner, Principal Analyst at Interarbor Solutions, sits down with leading IT industry analysts to discuss the mounting complexities businesses face as they transform their IT strategy. Gardner most recently met with Tim Crawford, CIO Strategic Advisor at AVOA in Los Angeles, to examine how economic elements of hybrid IT factor into effective cloud selection and adoption. 

The risk of rushing in: technology misuse

In his interview, Crawford began by identifying a significant complexity that businesses face when some board of directors demand that their organizations “go cloud.” This misdirection is epidemic amongst businesspeople — perceiving a specific technology as an end, rather than as the means to drive a specific business initiative.

Many enterprises are going all-in on cloud, but aren’t considering that different cloud models — public, private, or software as a service (Saas) — have different uses and can be combined in various ways for any given application. “It’s not a one-size-fits-all answer,” said Crawford. And when companies do apply public cloud as a blanket solution, there have been measurable repercussions.

 “If you do the math, taking an application from a corporate data center and moving it to public cloud will cost you four times as much money. Four times as much money to go to [public] cloud! Yet we hear the cloud is a lot cheaper. And why is that?” asked Crawford.

The analyst offers two answers:

  • First, IT enterprises don’t yet understand how to best leverage new tools such as cloud.
  • Second, they’re still approaching cloud from a traditional mindset. In recent years, cloud has transformed as both a delivery mechanism and a tool, so how it’s used and leveraged must also evolve. When public cloud is used appropriately — both organizationally and economically — it actually can be less expensive.

Learning to leverage hybrid cloud in your business strategy

To determine if your company is effectively leveraging hybrid cloud to drive business, Crawford suggests sorting through what’s strategic and what’s most important.

“Electrical power is an example. Is that strategic to your business? No. Is it important? Heck, yeah, because without it, we don’t run. But it’s not something where we’re going out and building power plants next to our office buildings just so we can have power, right?” said Crawford.

To help decipher differentiating usage, Crawford encourages IT decision makers to ask, why am I using cloud — public or private — for this purpose? If a company chooses to run its email system in the public cloud, it is satisfying a need, not leveraging a service. Making this distinction will help enterprises distinguish viable opportunities to drive business with cloud.

Gardner suggests that businesses also ask, “Am I consuming this in such a way that I’m getting it at the best price point?” This allows IT decision makers to quantify business value against economic value — is the payoff of public cloud worth four-times the expense?

 “If you begin to understand the business value of the actions you take — how you leverage public cloud versus private cloud versus your corporate data center assets — and you match that against the strategic decisions of what is differentiating versus what’s not, then you get clarity around these decisions. You can properly leverage different resources and gain them at the price points that make sense,” said Crawford.

Your new role in IT: transformational leader

Digital transformation welcomes a transformation of roles— so where does that land modern IT professionals? According to Gardner, organizations now need help addressing a “cloud sprawl” that resulted from the rush to cloud, leaving organizations siloed in their IT strategy.

“Instead of being a technology-centric organization, IT really needs to be a business organization that leverages technology,” said Crawford. If they rise to this challenge, IT teams could serve as the next strategic brokers between IT functions and business outcomes.

Currently, Crawford suggests IT teams are in the best position to help organizations manage different delivery mechanisms — cloud, hybrid cloud, and on-premises infrastructure — to be used as business levers. He only asks what tools and mechanisms they will need to make this possible.

Hewlett Packard Enterprise (HPE) is focused on creating such a software tool. At HPE Discover Madrid, HPE announced the industry’s first multi-cloud management solution, HPE OneSphere. Through its software-as-a-service (SaaS) portal, HPE OneSphere gives customers access to a pool of IT resources that spans the public cloud services they subscribe to, as well as their on-premises environments. Using this new tool, organizations are able to seamlessly compose, operate, and optimize all workloads across on-premises, private, hosted, and public clouds. HPE OneSphere also provides dashboards based on different user roles that offer business analytics. HPE OneSphere is designed for IT operations, developers, and business executives seeking to build clouds, deploy applications, and gain insights faster.

With the right tools, such as HPE OneSphere, enterprises can use economic measurements to identify the best cloud model to drive business success. The next step is fueling this approach with the expertise of IT teams — affirming their new role at the forefront of digital transformation.

HPE has assembled an array of resources that are helping businesses succeed in a hybrid IT world. Learn about HPE’s approach to managing hybrid IT by checking out the HPE website for HPE OneSphere. And to find out how HPE can help you determine a workload placement strategy that meets your service level agreements, visit HPE Pointnext.

Chris

Follow HPE Composable Infrastructure

0 Kudos
About the Author

Chris Purcell

Converged Susyems, Composable Infrastructure, Cloud, Integrated Management and Hyperconverged Infrastructure

Events
See posts for dates
See posts for locations
HPE at 2018 Technology Events
Learn about the technology events where Hewlett Packard Enterprise will have a presence in 2018.
Read more
See posts for dates
Online
HPE Webinars - 2018
Find out about this year's live broadcasts and on-demand webinars.
Read more
View all