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The art of changing the cost trajectory of IT: Part 2


trends.pngThe New Style of IT requires the re-architecture of how IT services are delivered -- and HP can help you achieve new performance and efficiencies with our Cloud Design Service and our Strategic Roadmap Service.   Reaching your desired state requires automation, and even more importantly, "orchestration" of the entire provisioning process for services.  The art of the possible is a fully orchestrated process that does not -require human intervention and hand-offs between the technology silos.  This new automated supply chain provisions the bare iron, operating system, networking and storage, and lays down all the software needed to provide the service and manage the platforms. 


HP uses solutions like HP Cloud System Matrix 7.0, HP Cloud Service Automation, Flex Fabric, Virtual Connect, Intelligent Management Center and 3PAR Operating System Software Suite to create this work of art.  After the new process is designed and deployed in your environment, and this is not trivial task but it is well work the investment, it can be instantiated with minimal human intervention.  The requested service can be deployed to your customers in minutes rather than weeks. 


Herein lies the secret to changing the cost trajectory of IT so that more dollars can be spent on innovation.  With the creation of an end-to-end automated supply chain, you change the human energy game by improving the administrator's ratio of systems from 1 to 100s to 1 to 1000s.  An example of how this works is HP's own transformation story which resulted in flipping the maintenance and innovation spend.  Today ~70% of our IT spend goes toward innovation and ~30% goes to maintenance, and this is accomplished with ~50% less staff. 


Now if you are an IT professional this topic may not be very exciting because it is clear that automation and orchestration is reducing the amount of people needed to deliver an IT service.  I can also assure you that HP is not the enemy with our ability to provide this end-to-end automation using solutions I mentioned previously.  We are actually your ally , but to benefit from our enabling-technologies you must become a change agent.  You need to expose the art of the possible to your leadership team and be up front and driving the change -- rather than riding on the back where a big bump in the road can throw you off the transformation wagon! You must be willing to change, even if it means using something new and unfamiliar to achieve the desired outcome.   


The rise in global cloud computing is posing a  danger to IT organizations: becoming irrelevant to the business.   IT can no longer say no to users when they demand a mobile application store experience.  If you do say no, public cloud service providers are quickly becoming the new shadow IT and your business partners will buy the services from these public cloud providers.  If you don't believe me, just go to your finance department and ask them for the American Express charges to Amazon, HP Cloud, Rack Space, Verizon, Savvis. You can fill in the blank here.  IT must do things differently to remain relevant to the business.  They must transform the IT delivery model to support cloud computing! 


So how do you do this?  How do you transform into a world class Cloud service broker, offering your IT customers the Cloud-like computing experience that they expect?  How do you move from a mentality of simply optimizing silos where you see small incremental gains in operations savings and staffing efficiency to creating an automated supply chain that delivers a service in minutes rather than weeks – and at half the cost?  How can you provide the business with technology innovation that drives revenues?  It can be summed up in two words... Investment and change!


Art and architecture are often about lines and perspective.  IT transformation is not too different; it too is about lines, "flat lines."  The New Style of IT will have very flat lines of operating cost when companies scale due to very efficient automated service delivery models. 


In my next blog we will explore the financial impacts of transformation resulting in flatter operating costs.  To achieve this "change" it will require "Investment" -- but this investment has a very high return on capital.


And that pretty picture, my friends, is a site for sore eyes.


Read Lee’s other blog-posts @ The Art of the Cloud and The art of changing the cost trajectory of IT: Part 1


Find out more about HP CloudSystem Matrix 7.0 Services by visiting our website.


Discover more about HP Cloud Design Service by visiting our website.


Meet Lee and his HP colleagues @ Meet the HP Technology Experts.



About the Author


I am on the WW Cloud and Big Data Solutions Team. I help our customers adopt HP advanced solutions that are made up of products and services from across HP. I have over 30 years experience in the technology business including 17 years of business ownership.

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