Where Are the Savings and Benefits Delivered by Hybrid Cloud?

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Cloud computing is undoubtedly gaining momentum across businesses of all sizes due to its compelling promise to deliver business agility and cost savings.   You might ask, “How much and where will I see those savings?”What, and where are those savings, you might ask?   Well, we collaborated with Principled Technologies on a study that answers just those questions.  The intention of the study is to provide considerations for assessing the impact of hybrid cloud on your business.  It focuses on two areas:  the business value delivered by hybrid cloud computing and a side by side comparison of two possible paths to hybrid cloud, build your own or buy a fully engineered solution.

The first part of the study focuses on the business values organizations can expect to realize, specifically the cost savings and benefits of hybrid cloud computing.   For a theoretical enterprise of 29,550 employees and a virtualized infrastructure of 5,000 virtual machines (VMs), Principled Technologies used industry available research and their own analysis to calculate that business benefits they could realize.   For example, their findings revealed significant savings around resource optimization with up to – as much as 50% in CapEX savings , 10% associated with reclaiming inactive VMs and 2% more efficient use of software licenses as well as greater efficiencies in service delivery.

Reduced complexity and increased efficiencies from automation and operational management can save IT staff time – as much as 56%, giving them the time to focus on other, more impactful business initiatives and projects.  With ever increasing demands on already overtaxed resources, these savings can have a big impact on any organization.

The second part of the study explores a side by side comparison of the two paths you can take to get to a hybrid cloud – build your own vs. buy an engineered solution.  It includes Principle Technologies first-hand experience and analysis for both approaches.  Their results revealed that the EMC engineered solution, Federation Enterprise Hybrid Cloud, provides a 92% faster time value through an accelerated cloud implementation of infrastructure-as-a-service.    Most of our customers start with infrastructure-as-a-service but to really deliver IT-as-a-service they want additional features such as data protection across multiple sites, database services, encryption and integration with their operational processes.  Even though the study didn’t build a solution to deliver ITaaS, it validated much of what our customers have been telling us all along as well as our own experience.   We can deliver IT-as-a-Service >50% faster than our customers can do it themselves, allowing them accelerate value to the business.     Taking into account the time, effort and resources involved to design, implement, support and upgrade, the engineered solution can save as much as 67% over 3 years compared to a build your own approach.

Read the full report to understand the benefits hybrid cloud can deliver to your business as well as the considerations for assessing whether to buy or build your own.

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