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How to Realize Bottom Line Efficiencies with Flexible Capacity Provisioning

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By Toine Timmermanns     

Flexible Capacity Global Solution Sales Lead

One of the most enjoyable parts of my job is meeting with customers, listening to their challenges and helping them find scalable IT solutions that improve their bottom line. Over the years, I have learned that a successful solution is more than meeting the IT infrastructure needs. I wish it were that simple. A real flexible IT infrastructure solution often requires understanding the organizational intricacies outside the data center.

Public, private or hybrid?

For innovation to flourish, IT must stay agile by embracing new technologies, providing user fast access to new applications and employing professionals with the right skills to deploy and implement state of the art services. That is a huge investment in IT assets and the result for most is that the cost does not line up with the revenues.  Customers must wrestle with deciding what cloud solution is in their best business interests ―public, private or hybrid.

 HPE20160512137_800_0_72_srgb.jpgOne of the most important reasons that customers move to the public cloud is financial. Benefits include pay for what you use, trade investment for a service charge and the ability to focus capital on the enterprise’s core businesses rather than expenses related to the IT infrastructure.  Improving business agility and accelerating time to market are very alluring benefits for C-level executives. But there is a downside. Pricing is unpredictable and perceived to be costly, leaving Finance feeling uneasy. IT worries about a loss of control, security issues, latency and the ability to deliver new services to meet user business requirements. Public cloud does not provide the total solution. 

A private cloud solution has pluses and minuses too. While IT feels back in control, it is difficult to line up revenues with the huge investment in assets from capacity requirements to skills training for personnel. Lengthy procurement cycles force IT to purchase more capacity to avoid downtime and poor performance issues, adding more financial headaches to the equation.

Impatient internal users complain that IT is too slow at delivering on new services and applications that they need to meet their own job requirements. IT is often stuck in a situation where they don’t have the capacity to do the job, enough people to do the work and the wrong skill sets for the emerging technologies. This is not an example of a good business model either.

Statistics gleaned from a 451 Research white paper entitled Best of Both Worlds: Can Enterprises Achieve Both Scalability and Control When It Comes to Cloud? reported that:

  • Half of enterprises surveyed experienced downtime because of capacity-planning issues.
  • 57% of respondents complained that slow performance was a significant issue.
  • The risk of under provisioning pushes most enterprises to take the safe path and overprovision―59% for compute on average and 48% for storage (a significant financial impact).
  • 59% of enterprises reported that they waited more than three months for new capacity.

In its white paper, 451 Research found that “HPE’s Flexible Capacity helps resolve these challenges by providing on-premises infrastructures on a flexible and scalable basis. The solution was found to be on par with public cloud and 29% less expensive than a self-managed private cloud.”

Let’s get Flexible.

HPE Flexible Capacity is a hybrid IT service that combines the freedom of the public cloud and the security of on-premise IT.  Fast, cost effective, scalable, and secure. I tell our customers, yes, you can “have it all.” HPE Flexible Capacity takes the complexity of provisioning and wraps the technical and financial elements together so customers can breathe a sigh of relief. The solution provides a consumption based IT payment model that aligns cash flow to actual capacity usage. Provisioning is now affordable and easily available.Toine FC blog Figure 1.png

With HPE Flexible Capacity, we forecast capacity needs for customers, tell them what they need and we supply the capacity (see image above). We provide capacity on-demand (literally in minutes not months), eliminating the waste associated with overprovisioning.  Imagine a technology refresh with no need to worry about Procurement.  You can satisfy the technical and financial stakeholders all in the same meeting.

Customers are telling us that HPE Flexible Capacity:

  • Improves their Profit & Loss (P&L) statement
  • Enhances Time to Market
  • Delivers the capacity they need where and when they need it and avoids procurement delays
  • Eliminates costly overhead, enabling them to funnel monies to strategically relevant projects
  • Aligns costs to the business needs
  • Removes operating costs from the balance sheet, enabling the potential of a service accounting treatment

The solution incorporates the right mix of cutting edge infrastructure, internal and external resources and leading management tools.  Now, that’s a total solution.

Here are some real-life examples of the different ways our customers incorporate the HPE Flexibility Capacity solution in their business lives:

  • Professional services company Accenture uses HPE Flexible Capacity to offer a public-cloud consumption model around private-cloud hardware and software without forcing clients to invest in large capital purchases upfront.
  • The IT director at the Erasmus Medical Center (Rotterdam, Netherlands) noted that “Using on-demand HPE Flexibility Capacity means that we no longer risk running out of storage capacity or having too money tied up in unused storage.”
  • HPE Flexible Capacity enables Swedish healthcare authority Norrbottens Läns Landsting, to provision additional capacity in minutes and pay for it all out its operating budget.

The primary advantage of implementing a hybrid infrastructure solution is the ability to provision infrastructure and applications when the need occurs, increasing agility and scalability. HPE Flexible Capacity is all about giving our customers the “best of both worlds” ―an agile and affordable foundation that delivers cloud benefits and an on-premises IT infrastructure. To learn more, get in touch with us today!

 About the Author:

Toine Timmermans.jpgToine Timmermans is the Flexible Capacity Global Solution Sales Lead for HPE from The Netherlands. He works with customers to build awareness of HPE’s infrastructure utility service and provide support and guidance to key Flexible Capacity pursuits globally.

 

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