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Is Consumption-based IT a Good Option for Your Organisation?

Ryan Sparks

April 20, 2021

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As-a-service solutions that provide pay-as-you-go, cloud-like simplicity for on-premises infrastructure are gaining popularity. Here are four great reasons to investigate the possibilities of HPE GreenLake for your business when it comes to Consumption-based IT.

Consumption-based IT

It’s the beginning of the fiscal year for many businesses, and it may be time to start budgeting if you haven’t already. How do you purchase/consume your IT infrastructure? Has your process always been to meet with various vendors and choose to buy your servers, storage and networking all at once? And maybe purchasing more than needed right now to cover peak periods in the year? How efficient has that been? If you’re like most businesses, you’re probably spending 40-50% more than you need to by purchasing that excess capacity right now. Would you be interested in a Capex spend reduction of up to 40%?

You’ve probably heard about consumption-based IT. It is quickly gaining popularity across all major industries. Why? One important reason is that consumption-based IT improves your ability to align your infrastructure very closely with business demands. We are talking specifically about infrastructure, sometimes bundled with services, that is offered on a pay-as-you-go on-premises model, where charges are only incurred for the capacity that is used, thus eliminating overprovisioning.

4 more great reasons to choose consumption-based IT.

Addressing the overprovisioning challenge is just one of the advantages. Here are four more things to consider if you are wondering whether this approach is a good fit for your organisation:

1. Cost Optimisation

Businesses often choose this route because the as-a-service model can cut costs and simplify IT deployments. With every additional cloud service, an organisation can often reduce its in-house IT infrastructure, leading to fewer servers, hard drives, network switches, and software deployments. Less on-premises IT means less physical overhead, such as equipment space, power and cooling.

2. Freeing up IT staff for innovation with Consumption-based IT

This approach translates to fewer fire drills and manual inputs and allows IT staff to focus on more important business projects.

3. Cloud-like simplicity

Simply put, with the as-a-service model, companies can get the same cloud experience everywhere — including in their on-premises data centres, colocation facilities, at the edge, and in multi-clouds.

4. Consumption-based IT Is The Perfect Match For Hybrid IT

After all, today most organisations live in a hybrid IT environment. To maintain a competitive advantage, companies need an IT model that helps them adapt rapidly to the ever-changing technology landscape.

This is where consumption-based IT really shines:

Consumption-based IT balances the flexibility of cloud infrastructure with the control and reliability you’d expect from your on-premises data centres.

Consumption models let you pay for IT resources and capacity on-demand, reducing upfront capital expenditures and the costs and time associated with traditional procurement processes.

IT consumption models enable rapid infrastructure expansion to accommodate the needs of new projects and workloads. That contributes to greater alignment between business leaders and IT leaders. And when those elements of your organisation are aligned, you are in a better position to deliver innovative products and services to your customers.

Choosing a Partner with a Record of Success

So now the question becomes: Who should you choose as your partner for the journey to consumption-based IT? HPE has over a decade of experience in this area, and a 95% customer retention rate for HPE GreenLake, our portfolio of cloud services that bring the cloud experience to all of your applications and data, wherever they reside – including on-premises, in colocation facilities, and at the edge. HPE GreenLake cloud services offer infrastructure and workload solutions that apply a consumption-based IT model across hybrid IT environments. HPE GreenLake helps organisations achieve the best of both worlds—the economics of on-demand cloud services with the control and data security of the on-premises infrastructure.

Let’s Look At What An Analyst Has To Say About Consumption-based IT

HPE commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study to examine the potential return on investment (ROI) that enterprises can realise by leveraging HPE GreenLake cloud services.

The purpose of this study was to provide a look into information gathered from organisations with years of experience using HPE GreenLake cloud services and evaluate the potential financial impact. The report shares some impressive statistics worth considering, as well as customer feedback:

• 75% shortened time-to-market for deploying global IT projects.

• Capex savings of up to 40%, due to the eliminated need for overprovisioning

• 60% reduction in support/professional services costs.

What Customers Said About HPE GreenLake

• “We’ve reduced our data centre costs by nearly 75% with HPE GreenLake. Each of our sites with data centre needs is now Opex, not Capex.” – Global Data Centre Manager, a chemical company.

• “HPE GreenLake has provided us with better performance and lower costs and eliminated what used to be a cumbersome process of ordering and procuring new hardware.” – Storage Architect, a global consulting company.

The Future Looks Bright for Consumption-based IT

IDC has observed that the pandemic and economic crisis have accelerated interest in flexible consumption models like HPE GreenLake. The market research firm expects adoption levels for this approach to increase through 2024. In addition to this, IDC predicts that by 2024, over 75% of infrastructure in edge locations and almost half of the infrastructure in corporate datacentres will be consumed/operated in part or in total via an as-a-service model.

Take a few minutes to watch this short video introducing HPE GreenLake cloud services.

Yes, it’s time to decide how you will procure your IT infrastructure in 2021. If you are on your way to digital transformation, aiming at keeping your IT procurement simple, and interested in a Capex spend reduction of up to 40%, HPE GreenLake may be your best option.

IDC has observed that the pandemic and economic crisis have accelerated interest in flexible consumption models like HPE GreenLake. The market research firm expects adoption levels for this approach to increase through 2024. In addition to this, IDC predicts that by 2024, over 75% of infrastructure in edge locations and almost half of infrastructure in corporate datacentres will be consumed/operated in part or in total via an as-a-service model.

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