For any organization or its individual departments to succeed, they need to reduce costs and manage overhead. In IT, increasing utilization of existing assets, reducing man-hours deployed to manage these assets and simplifying administration contribute significantly towards reduction in overhead.
This reduction in costs has a direct impact on the bottom line of any organization and can free up resources that can then be deployed to increase the top-line revenue drivers.
Savings Opportunities with Hyperconverged Infrastructure:
While evaluating a hyperconverged setup, there are 6 key sources of potential savings opportunity that one should consider. The capex and opex cost differential across these sources between a traditional vs a hyperconverged infrastructure will give a true representation what potential savings would be.
- Consolidated workload silo’s: A hyperconverged infrastructure gives the ability to consolidate workload silos into fewer or just one silo. This drastically improves overall server utilization, thus requiring smaller and more compact deployments.
- Coexistence: Some hyperconverged solutions allow co-existence with existing vSphere hosts. Thus it eliminates the need of replacing or maintaining redundant infrastructure.
- Reduced Electrical & Cooling costs: With less hardware in your data center, there is significant reduction in opex expenditure of maintaining the setup. Thus reduced annual maintenance contracts reduce operational IT budgets.
- Better staff utilization: Hyperconverged infrastructure fundamentally requires fewer discrete skill sets to manage it. Thus it has the potential to free up existing staff so that they can focus on targets that are more revenue / business facing.
- Training: A hyperconverged infrastructure setup reduces the training requirement by converging all components of the infrastructure into a single environment. Thus there is no longer a need to train someone on individual components to manage this setup.
- Opex & Capex Improvements: With the option of a rolling upgrade, capital budgets can be freed up of sudden spikes in infrastructure spends. This, in addition to low cost of acquisition, is a significant advantage when it comes to scaling up as it would not be dependent on predetermined / misaligned financial planning.
Initial Investment Analysis:
The initial investment in any solution is the most important financial element that any organization evaluates when making a significant purchase. This is driven by budgetary planning models adopted by them. However, what many organizations fail to evaluate is the total cost of ownership as compared to initial investment. Since budgets and financial plans limit spend to small time periods after exhaustive approvals, IT organizations end up planning and procuring based on what the business would need 3-5 years out rather than what they would need today. This leads to significant over procurement of resources that the business will grow into. Thus the utilization curve typically starts from being way under the resource capacity to eventually crossing the capacity limits.
With hyperconverged infrastructure, organizations can break out of this cycle by granular scaling. Organizations can buy what they need today and simply add nodes as and when they scale. Thus they can maximize their utilization curve and eliminate resource wastage.
Thus with a hyperconverged infrastructure, organizations can not only transform their data centers, but also change the outlook of the IT function with a tangible budgetary impact on the company’s bottom line.