Cloud implementation—Challenges and financial benefits

No one doubts that cloud computing at the enterprise level has the potential to lift adopting companies to new heights. The problem is that finance and IT have drifted too far apart in recent years, which has led many executives to question the financial benefits of cloud implementation. Fortunately, IIS and HPE Financial Services have partnered together to provide a better way to finance cloud implementations.

Not so long ago, the conversation between finance and IT revolved around the benefits of transitioning IT acquisition from a capital expense to an operating expense. Subsequently, a vast number of organizations migrated to the cloud, which triggered unintended financial consequences for those who moved too quickly.

Hidden costs, more risk

Over-provisioning and under-provisioning are only two of the many ways cloud computing can incur hidden costs. In fact, recent research has revealed that as many as 30 percent of physical servers sit idle for more than six months. This level of inefficiency is unacceptable. Yet, digital enterprises rush to migrate to the cloud. From a topical perspective, the cloud removes a large proportion of hardware acquisition costs and maintenance from an organization's balance sheet. The reality on the floor of the data center tells a different story.

A harsh reality

IT continues to sprawl and still poses problems. The problem is that virtual servers are so easy to provision that the sheer complexity of virtual infrastructure can increase exponentially. In a worst case scenario, IT employees may simply forget to turn off virtual machines, which effectively amounts to wasted computing and storage resources.

Shadow IT still a problem

IT sprawl is made worse by shadow IT. Recent research has shown that as many as 35 percent of software-as- a-service implementations occur without IT's approval.

IT consumption: a new paradigm

Fortunately, new solutions have emerged to help enterprises tackle these challenges. IIS and HPE Financial Services have partnered together to offer digital enterprises new ways to solve these challenges and bring the financial benefits of the cloud to fruition.

Asset inventory and recovery

By being able to accurately perform an inventory of hard and virtual IT assets, executives can get a real-time view into their true utilization rates. More importantly, unused assets can be retired and underutilized assets can be consolidated.

Beyond new

Enterprises can also take advantage of HPE Financial Services’ Pre-Owned services. Certified, pre-owned IT technology can be purchased, leased or rented, giving executives even more flexibility in planning for their IT consumption needs. From a cash management perspective, the Pre-Owned solution may require low upfront costs and more affordable payment options rather than requisitioning completely new equipment.

The capability provides an elegant solution for dealing with data center migrations, disaster recovery management and seasonal growth requirements, like the holiday season.

While each individual solution provides value and flexibility, when multiple components are brought together, as part of an enterprise-wide IT consumption strategy, they can have a dramatic and measurable impact on an enterprise’s ability to become adaptive to a changing business environment and their bottom-line ROI.

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