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3 signs you need a better IT consumption model

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By: Scott Ramsay

World Wide Portfolio Director for HP Datacenter Care Services at Hewlett-Packard

 

Nearly every major industry is experiencing some sort of disruption. If the IT department isn't agile enough for the business to react to disruption, then the business will fail and IT will be a contributing factor to that failure.

 

Selecting the right consumption model is becoming essential in preparing enterprises for unknown future use and consumption needs. Much of what HP offers centers on delivering expertise from the thousands of customers that we engage with worldwide. Our expertise helps individual customers get the most out of their IT.

 

IT consumption models free IT resources—capital and management—to map directly to business needs. The following are signs that you might need a better IT consumption model.

 

IT Consumption Model1. You're tired of playing the capacity guessing game for datacenter build-out

CIOs fear running out of capacity. That fear causes them to massively over-provision their safety net. They overestimate need because they don't want to run out of capacity. From the CFO's perspective, that's a terrible scenario. Overbuying ties up capital and creates underused capacity. HP Flexible Capacity (FC) service often works for customers in this predicament. In this model, HP builds a datacenter for the customer and the customer pays for what they use when they use it. Consumption and payment are linked. Flexible Capacity does not require an initial capital outlay, so you immediately free up cash for other business needs. For the CIO, the main benefit is having capacity ahead of demand. They no longer have to worry about the annual dance with the CFO to get extra budget or the systematic delays in getting P.O’s approved and actioned. They can get extra capacity through a simple change order to their service contract. They regain control as they know what's being used, how much, and by whom. The resources tied up in an over-provisioned IT infrastructure are freed for innovation.

 

2. IT functions as a cost center, not an innovation center

Today, IT uses most of their resources and capital to simply keep the business running. This focus prevents them from helping the business meet revenue goals or move on to the next big thing. IT needs to be in a position to drive innovation in the enterprise. By introducing additional consumption models, you enable IT resources to focus on innovation and new features that can help the business move forward. When capital is no longer tied up in underused IT resources, money is available to invest in R&D or go-to-market initiatives. By tying the IT spend more closely to business outcomes you start to see a more natural correlation between IT and business success. When IT spend maps closely to business IT is no longer just a cost center that runs programs and maintains status quo. Instead, IT becomes an enabler for business success.

 

3. The public cloud isn’t suitable for certain workloads or certain businesses

Service providers, healthcare, finance, government—the storage, compliance, and security needs for these sectors are growing exponentially. All need to accommodate growth and capacity quickly. These sectors want flexibility and to match costs to revenues. However, none can feasibly consider public cloud offerings because of security and latency concerns. The HP Flexible Capacity IT consumption model offers the benefit of public cloud economics with the added security, control and the lack of latency of an on-premise solution.

 

Finding the Right Consumption Service?

A flexible IT consumption model provides nearly limitless possibilities. Their variability means that usage can map directly to your business requirements. These models can vary by use, service contract, and financing options. I'd argue that most of what HP offers is a consumption service because our goal is to help customers consume their IT more effectively, even though the cost of the infrastructure is already committed. HP Flexible Capacity takes consumption onto the next level by offering a true consumption model with costs matched to capacity consumed HP Flexible Capacity includes Datacenter Care which provides a more comprehensive service, where we not only help customers with their IT uptime but provide advice and insights that help them evolve as a business. Again, HP helps the customer consume IT more effectively and then grow and evolve IT to meet the needs of the future.

 

With stable, predictable environments, pre-provisioning and leasing models can work well. In a business with rapid growth and variable use patterns, metered models, like HP Flexible Capacity, allow you to provide capacity ahead of demand and tie costs to revenue. As a metered service, you can check usage and deliver more capacity ahead of need. This gives your enterprise the flexibility to grow quickly as your business grows and still be able to scale back if required.

 

The IT environment is a continuum that runs from a traditional IT on-premise datacenter, all the way to private cloud and on to public cloud. HP cuts across all those elements with a range of services that allows us to use each element of the infrastructure in a way that makes sense for the business. With HP Flexible Capacity you have the option of including the public cloud in one service contract (Hybrid Flexible Capacity) which delivers one experience, one portal and one invoice whilst also providing the same HP Flexible Capacity expertise to evolve you IT to the business needs of the future.

 

 

About the author

Scott Ramsay_Lync.pngScott Ramsay

World Wide Portfolio Director for HP Datacenter Care Services at Hewlett-Packard

 

Scott has been part of HP Technology Services team for 6 years.  He has held a number of roles in various HP business units and across multiple operational disciplines, including: Finance, Supply Chain and Strategy. Scott is based out of the UK.

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