3 reasons why consumption-based IT is the future
Consumption-based IT is not just a fancy word that companies use on the slides of a presentation about innovation. It is a future model for organisations around world that want to lower IT costs, maintain control over security and compliance, and still enjoy the benefits of expanding their operations to public cloud services.
The COVID-19 outbreak has demonstrated that companies need to be prepared for anything. Organisations were already facing several difficult challenges and finding solutions has suddenly become much more urgent. We often hear that flexible and agile companies will survive this crisis and can even become stronger as the competition is struggling. But what do you need to develop these important characteristics of future-proof organisations?
Consumption-based models are still new, but they are rapidly gaining popularity. Hewlett Packard Enterprise was the first to introduce such a model: HPE GreenLake. Since then, the company has been working with customers to add new capabilities and make IT-as-a-service available to businesses of all sizes and all industries.
So, what are the benefits of a consumption-based IT model?
1. You pay only for what you use
Hearing this sentence might sound logical. In fact, why should you ever pay for something that you do not use? Yet many organisations are spending money on capacity they do not need. Overprovisioning is a common practice when dealing with an uncertain future, but modern companies cannot afford to spend huge budgets on IT without seeing the short-term benefits of their investments. The CIO of an organisation needs a fast return on investment if he or she wants to verify expenses.
A consumption-based IT model does not require capital upfront. Costs can vary depending on what you need and use. These models are usually monthly subscriptions that can easily be modified or cancelled. This gives companies flexibility to deal with IT budgets. Overprovisioning is not necessary because extra capacity is always available when needed.
According to research conducted by Forrester Consulting and commissioned by Hewlett Packard Enterprise, HPE GreenLake as a consumption-based IT solution leads to 30% capex savings due to the eliminated need for overprovisioning. Imagine how many resources you can use to drive innovation in your organisation …
2. You get faster value from IT projects
Speed has become essential for companies that want to flourish in a changing world. So if the IT department is slowing things down, it can be very frustrating. In the past, it could take months to properly deploy a solution. Thanks to consumption-based models in a hybrid world, it now takes only a few minutes before you can start using software and tools.
Consumption-based models give organisations the ultimate freedom to choose from a wide range of readily available technologies. They offer pre-packaged options to speed up implementation, but you can also request a new solution whenever you need it.
The same research by Forrester Consulting states that HPE GreenLake has reduced time-to-market of deploying global IT projects by 65%. Consumption-based IT models not only save money, they also deliver faster value
3. You retain control of sensitive data
Most organisations understand the benefits of a public cloud environment, but data and applications often cannot be migrated due to security and compliance issues. A hybrid environment is the only solution to enjoy the financial benefits and flexibility of a public cloud service without sacrificing control. Whatever you do, you are always pulling the strings to manage performance, latency, risk and cost.
Consumption-based models will also increase the productivity of an IT department. Because these solutions simplify IT operations, your people can focus on more valuable tasks than routine jobs. They can think about innovation and experiment with technologies that will ultimately benefit both your customers and your organisation. Forrester Consulting’s research about the effects of HPE GreenLake has calculated that IT productivity increases on average by 40% when reducing the support load on IT.
Other important but less quantifiable benefits of consumption-based models include access to the latest technology, reliability and transparency with growing workloads and business requirements, improved security, and improved business productivity due to fewer system outages and faster application performance.
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