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Why HPE Flexible Capacity? Case study provides an excellent answer.


A major aerospace company recently found that HPE Flexible Capacity was definitely the answer to the questions they had about moving their SAP Business Intelligence (BI) to a newer and better platform. They were looking for technology that would provide flexible IT solutions to support an unpredictable migration schedule for their business units, while also delivering measurable cost savings. 

 The company was ready to initiate a standard purchasing process/cycle, but found that their finance operations had just established a rule that required all new IT acquisitions to be done with OPEX funds. No CAPEX allowed.

Why not a lease, then?

In the past, the default alternative to purchasing assets would have been to lease them and pay as you go. But leasing didn’t accommodate the flexibility that needed to be an essential element of any proposed solution. Without flexibility, the volatility of the marketplace – now and in the future - creates a very real chance of either over-provisioning or under-provisioning capacity.

  • Over-provision and the company is certain to be able to respond to the maximum demands of the enterprise. BUT, ends up paying – usually a lot - for capacity that isn’t being used.
  • Under-provision and the company saves $$$. But the worry about not being able to meet demands is always there as the marketplace changes and the enterprise evolves.

 Why not public cloud? 

many people in glass office.jpgPublic cloud would seem to align itself perfectly with the ideal approach specified by our aerospace customer. It allows asset acquisition using OPEX vs. CAPEX funds and supports the ability/flexibility to pay for only the capacity that is actually used. 

BUT, public cloud is far from ideal for companies like our aerospace customer that must meet stringent industry or governmental regulations for data security and privacy. It also does not accommodate a need or desire for control of assets and data. Finally, as more and more companies are finding out, public cloud is not nearly as “affordable” as they were initially led to believe, because of additional costs like data ingress and egress fees. Check out the 451 Research report for an excellent summary of the true costs of the public cloud approach.  

 Why not HPE Flexible Capacity?

The more the company considered its alternative, the more they realized that HPE Flexible Capacity was the only approach that offered them the ability to:

  • Procure IT assets using OPEX funds
  • Provision for projected capacity, yet pay only for what they actually used
  • Enjoy the cost benefits of a public cloud with the security and control of an on-premise solution – the best of two worlds

 Working with a Hewlett Packard Enterprise team, the customer was also able to determine that the cost of the public cloud approach would be significantly more than going with HPE Flexible Capacity. Then, their only question to HPE was, “How soon can we get going with FC?”  

Any more questions?  

You can find answers to other questions you might have about HPE Flexible Capacity on the website. I would especially recommend:

Also remember that according to industry analyst, IDC, by 2020, 80% of IT infrastructure software and hardware purchasing will be based on OPEX models that include public cloud services, third-party private cloud services, subscription-based on-premises infrastructure software and on-premises hardware provided on a pay-as-you-go basis (IDC FutureScape: Worldwide Datacenter 2017 Predictions, IDC #US41870916). If you want access to the benefits of this type of approach today, HPE Flexible Capacity is the only way to go – no question about it. 

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About the Author


Senior Vice President & General Manager of Advisory & Professional Services for HPE Pointnext Services