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Is consumption-based IT a good option for your organization?

As-a-service solutions that provide pay-as-you-go, cloud-like simplicity for on-premises infrastructure are gaining popularity. Here are five great reasons to investigate the possibilities of HPE GreenLake for your business.

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 By Jacquelyn Morgan, Marketing Manager, HPE

It’s the beginning of the fiscal year for many organizations, and it may be time to start budgeting, if you haven’t already, for your IT spend in 2021. How do you purchase/consume your IT infrastructure? Has your process always been to meet with various vendors and choose to buy your servers, storage and networking all at once … actually purchasing more than needed right now to cover peak periods in the year? How efficient has that been? If you’re like most businesses, you’re probably spending 40-50% more than you need to by purchasing that excess capacity right now. Would you be interested in a Capex spend reduction of up to 40%?1

You’ve probably heard about consumption based IT. It is quickly gaining popularity across all major industries. Why? One important reason is that consumption-based IT improves your ability to align your infrastructure very closely with business demands. We are talking specifically about infrastructure, sometimes bundled with services, that’s offered on a pay-as-you-go on-premises model, where charges are only incurred for the capacity that is used, thus eliminating overprovisioning.

4 more great reasons to choose consumption-based IT  

Addressing the overprovisioning challenge is just one of the advantages. Here are four more things to consider if you’re wondering whether this approach is a good fit for your organization:

  1. Cost optimization. Organizations often choose this route because the as-a-service model can cut costs and simplify IT deployments. With every additional cloud service, an organization can often reduce its in-house IT infrastructure, leading to fewer servers, hard drives, network switches, and software deployments. And, less on-premises IT means less physical overhead, such as equipment space, power and cooling.
  2. Freeing up IT staff for innovation. This approach translates to fewer fire drills and manual inputs, and allows IT staff to focus on more important business projects. 
  3. Cloud-like simplicity. Simply put, with the as a service model, companies can get the same cloud experience everywhere — including in their on-premises data centers, colocation facilities, at the edge, and in multi-clouds. 
  4. Consumption-based IT is the perfect match for hybrid IT. After all, today most organizations live in a hybrid IT environment. To maintain a competitive advantage, companies need an IT model that helps them adapt rapidly to the ever-changing technology landscape. This is where consumption-based IT really shines:
  • Consumption-based IT balances the flexibility of cloud infrastructure with the control and reliability you’d expect from your on-premises data centers.
  • Consumption models let you pay for IT resources and capacity on demand, reducing upfront capital expenditures and the costs and time associated with traditional procurement processes.
  • IT consumption models enable rapid infrastructure expansion to accommodate the needs of new projects and workloads. That contributes to greater alignment between business leaders and IT leaders. And when those elements of your organization are aligned, you are in a better position to deliver innovative products and services to your customers.

Choosing a partner with a record of success

So now the question becomes: Who should you choose as your partner for the journey to consumption-based IT?  HPE has over a decade of experience in this area, and a 95% customer retention rate for HPE GreenLake, our portfolio of cloud services that bring the cloud experience to all of your applications and data, wherever they reside – including on-premises, in colocation facilities, and at the edge. HPE GreenLake cloud services offer infrastructure and workload solutions that apply a consumption-based IT model across hybrid IT environments. HPE GreenLake helps organizations achieve the best of both worlds—the economics of on-demand cloud services with the control and data security of on-premises infrastructure.

Let’s look at what an analyst has to say.

HPE commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study to examine the potential return on investment (ROI) that enterprises can realize by leveraging HPE GreenLake cloud services. (The Total Economic Impact of HPE GreenLake).

The purpose of this study was to provide a look into information gathered from organizations with years of experience using HPE GreenLake cloud services and evaluate the potential financial impact. The report shares some impressive statistics worth considering, as well as customer feedback:

  • 75% shortened time-to-market for deploying global IT projects.
  • Capex savings of up to 40%, due to the eliminated need for overprovisioning
  • 60% reduction in support/professional services costs.

Customers said:

  • “We’ve reduced our data center costs by nearly 75% with HPE GreenLake. Each of our sites with data center needs is now Opex, not Capex.” – Global Data Center Manager, chemical company.
  • “HPE GreenLake has provided us with better performance and lower costs, and eliminated what used to be a cumbersome process of ordering and procuring new hardware.” – Storage Architect, global consulting company.

The future looks bright for consumption-based IT

IDC has observed that the pandemic and economic crisis have accelerated interest in flexible consumption models like HPE GreenLake. The market research firm expects adoption levels for this approach to increase through 2024.2 In addition to this, IDC predicts that by 2024, over 75% of infrastructure in edge locations and almost half of infrastructure in corporate datacenters will be consumed/operated in part or in total via an as-a-service model.2

Take a few minutes to watch this short video introducing HPE GreenLake cloud services.

Yes, it’s time to decide how you will procure your IT infrastructure in 2021. If you are on your way to digital transformation, aiming at keeping your IT procurement simple, and interested in a Capex spend reduction of up to 40%, HPE GreenLake may be your best option.

1. Forrester: The Total Economic Impact of HPE GreenLake, June 2020

2. IDC Link, HPE Focuses on the Channel to Accelerate SMB Adoption of HPE GreenLake, October 2020

3. IDC's Worldwide Consumption-Based IT Infrastructure Taxonomy, 2020, DOC #US46094220, March 2020


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