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Reducing data center costs with a consumption-based IT model


Managing data center costs can create big headaches. HPE Flexible Capacity alleviates the pain by combining the agility and affordability of public clouds with the security and performance of on-premises IT.

Blog_Data_Center.jpgManaging data center costs creates big headaches for your business. Many IT departments operate under strict budgetary constraints, and vendors constantly push to upgrade their hardware systems. These challenges make it difficult to modernize and scale IT resources for strategic initiatives that help your business generate more revenue and at the same time reduce operational costs.

Because IT is typically tied to long procurement cycles, new data center infrastructure deployments can take months to arrive, which forces your business to delay taking advantage of new opportunities. If your business unit managers can’t afford to wait, they may bypass IT altogether and utilize a public cloud platform.   

This can decrease the control your business has over securing digital assets and complying with regulations.

The risk of guessing too low or too high

Situations like these force many IT teams into making long-term data center capital investments as you try to predict future demand for compute resources. Guess too low and IT can’t scale quickly to meet business needs. Guess too high and IT pays for compute resources that go unused.

Using capital to purchase hardware upfront also requires adhering strictly to best-practice refresh cycles. With all the new technologies coming into play, stretching out these cycles may cause systems to fall behind in performance capabilities. That can prevent your business from keeping up with services offered by competitors.  The most common solution is to guess and purchase enough to cover unpredictable growth—and when you overprovision, you add significant infrastructure cost.

Turn IT into a variable expense

Businesses can alleviate the pressure of data center costs by converting to a consumption-based IT model that turns IT into a variable expense rather than requiring up front capital. Flexible IT consumption enhances the ability to make quick adjustments for new projects, fast growth and business shifts without costly overprovisioning just in case.

The HPE Flexible Capacity consumption model offers IT on demand, combining the agility and economics of the public cloud with the security and performance of on-premises IT.

With HPE Flexible Capacity, we work together to implement the amount of compute that you need today, and add a “buffer” of extra capacity in your data center. You pay for that buffer when you start to use it. Because we meter and bill based on your usage, we have the data to know when the buffer is getting used up. An easy change order replenishes the buffer, meaning that you should never run out of capacity.  

This saves on IT infrastructure cost, because you don’t need to guess at future needs and purchase enough to account for possible future needs. Since customers on average overprovision compute by 59 percent, this can be a sizeable savings. And even better, you’re going to be ready for the next project, the next customer, the next shift in business strategy.

Consumption for your IT

HPE Flexible Capacity can be aligned to provide the appropriate service duration and units of consumption by customizing the IT payment model structure, which is based on your current and anticipated needs. And HPE Flexible Capacity is all about supporting you with the technology that you need. You can include a wide range of storage, servers, networking from HPE, including composable, hyperconverged and HPC technology.

By leveraging the consumption model, your business can establish a predictable and consistent budget. HPE also assumes the responsibility of making sure you get the most out of your technology with the right level of included support.

The key benefits of HPE Flexible Capacity

HPE Flexible Capability offers several key benefits that bring cloud-like agility and simplicity into your data center, while positioning IT to better address the digital needs of your business:

  • Save on cost by eliminating overprovisioning and having IT ready for immediate needs as well as growth
  • Invest in IT wisely by moving from an up-front expenditure model to a variable cost structure
  • Utilize pay-as-you-go capacity that enables delivery of IT as a service
  • Provide a public cloud-like experience while increasing control by deploying the environment in your own data center
  • Offload routine and manual work to HPE
  • Optimize data center operations to keep systems running smoothly, even during spikes in demand
  • Enhance efficiency and minimizes internal labor costs by remotely monitoring operations

Embed Video: Why a Hybrid IT Approach is Essential for Digital Transformation

Increasing your ability to adapt to constant change

A consumption-based model gives you the ability to map your IT investment strategy according to your business needs. This approach pays dividends by accelerating digital transformation and providing that extra degree of flexibility to adapt to frequent disruptions within your market landscape. By adopting an IT consumption model to improve your ability to adapt to constant change, you increase your probability of success.

To learn more, check out the HPE white paper, What Is IT Consumption?, and then read the IDC Technology Spotlight, As-a-Service IT consumption model for digital business innovation.

Heading to HPE Discover? Don’t miss this session on HPE Flexible Capacity.

 We’d love to meet you in person. Join thousands of IT professionals from around the world for Hewlett Packard Enterprise’s largest IT event of the year: HPE Discover. Meet us in Madrid and sign up for this session to continue learning about HPE Flexible Capacity: “One customer's experience using HPE Flexible Capacity to align spend to the business, gain elastic IT and simplify IT” led by expert Scott Ramsay.

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