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Hpe flexible capacity vikram yerram

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HPE Presentation at dynamicCIO eCommerce Summit, 26-27 February, 2016

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Hpe flexible capacity vikram yerram

  1. 1. Private Cloud Benefits with the Economics of Public Cloud: A win-win situation for CIOs & CFOs Vikram Kumar Yerram Country Manager – Technology Services Support 26th February, 2016
  2. 2. New Style of Business CxO Choices HPE Flex Capacity Offering Q&A Agenda
  3. 3. Time Value of Money ANSWER: Compound Interest 20 year old Britney makes a one-time $5,000 contribution to a retirement fund that grows at 8% per annum If she never touches it until she retires at 65, how much will she have? $159,000 If she waited until she was 39 to make her one-time $5,000 contribution, how much would it grow to? $37,000 ‘A Dollar today is worth more than a Dollar tomorrow’ Compound interest is an example of growth that we all understand Albert Einstein was once asked what is the most powerful force on Earth… What was his answer?
  4. 4. Taxi-hailing apps like Uber, Ola could eat into auto sales Anand Mahindra has warned the auto industry against rising competition from taxi-hailing apps such as Uber and Ola, saying it could push some people into giving up on ownership of cars and pose a threat to auto industry volumes. "The age of access is here. There is going to be increasing number of people who would want access to transportation and not own object of transportation. So what are the opportunities?"
  5. 5. Time to Value is enemy #1 Leading enterprises will be able to alter their digital DNA continuously Time Idea Value Value $ Value Time Continuous value creation People DataApps $ Today Tomorrow
  6. 6. Cost OptimisationCost Cost Optimisation  Your IT is now central to the success of your business, but we are all being asked to cut costs.  Imagine having a total IT solution that enables you to reduce cost, pay for what you consume and measure that cost for your business, for your customers. Challenge 1:
  7. 7. Reduce Risk  Your IT is enabling your business to change, to stay ahead of it’s competitors. But change brings risk. Risk to the business, risk to procurement, risk to your IT environment.  A solution that gave you access to the latest technologies, always access to enough capacity, and that delivered enterprise-grade support…where the solution simply works? Confidence Reduce Risk Challenge 2:
  8. 8. Time to Value  Time moves quickly, and so does your business. It has to adapt fast, and be agile in the market. Time to value is key.  Imagine being able to scale up your capacity to meet those changes in minutes, not months, but only pay for what you actually consume. Speed Time to Market Challenge 3:
  9. 9. In the Idea Economy, IT is the business partner for value creation IT must now be able to support two operating environments New Style of Business Traditional Business Traditional Apps Cloud Apps − Ops Driven − Cost Focused − Apps Driven − Agility Focused Technology Services to help customers today and bridge into the future
  10. 10. Many Choices  Buy & Build  Lease & Use  Consume and Pay-per-Use How should I pay for them? (‘How to Buy’ = financing decision) What assets should I acquire? (‘What to Buy’ = investing decision)
  11. 11. A dilemma for IT leaders “I want a public cloud experience,1 with the benefits of on-premises IT”2 Build on- premise infrastructure Consume IT from the cloud Pros: • Rapid Scalability • Pay per use • No up-front capital • Use a service, not manage IT Cons: • Less control • Not managing Security, Compliance • Latency issues • Data sovereignty issues Pros: • Choose your server, storage, networking, software • Manage your datacenter • Control security, compliance Cons: • Invest capital • Overprovision to handle growth • Manage months-long procurement cycles Private cloud Managed cloud Traditional IT Public cloud 1 Ease of start-up, several pricing models, OPEX treatment, flexible usage for Compute, storage, and networking 2 Control, security, legacy workloads, lower latency, data location, enterprise-grade SLA from HP Technology Services
  12. 12. HPE Flexible Capacity
  13. 13. There is an alternative: HPE Flexible Capacity – When large capital outlays and long procurement cycles no longer fit your business; when you want to pay for what you use – When you need the IT capacity ready for surges in demand – For your data and workloads that should stay on- premises, under your control – For workloads that could expand to the public cloud – When you need better than “best effort” SLAs Pay only for what you use Business application Forecasted capacity Local buffer Increase capacity Decrease capacity No upfront fee. Single monthly invoice.
  14. 14. What makes HPE Flex Capacity the right service for a Customer? • Clear business need for a client managed / on premise Cloud • Lengthy procurement process • Rapid growth, but, unpredictable month to month • Need to align IT costs with usage and / or revenues • Customer IT team can provide day-to-day management • Customer has a lot of overcapacity and wants to move it into FCS (Hybrid Model) • Customer believes flexibility is cheaper per unit of computing • Low forecasted growth • Customer wants to retain control of detailed technology choices • Unclear future IT / Business strategy
  15. 15. How is HPE Flexible Capacity unique? …a public cloud experience with the benefits of on-premises IT Unlike a Public Cloud On premises, with control over privacy, compliance, latency, and security; choose your technology Unlike other “utility” offers Include your whole IT estate- server, storage, networks, software; not tied to one vendor Unlike a product lease Variable payments based on actual metered usage; flexible technology refresh; payments vary up or down; easy change order process
  16. 16. Risk mitigation with a pay-for-actual-usage model* How Flexible Capacity works • Avoid lost profits due to CAPEX purchase over provisioning • Maintain a safe buffer of capacity: 10 percent to 40 percent depending on need • Monitor and replenish as needed: “Capacity ahead of demand” • Pay only for actual capacity used* (purple dotted line) not deployed (black line) • Facilitate cloud migration Capacity ahead of demand Traditional purchases (CAPEX) Buffer Compute needed and invoiced Time $ Minimum commitment level Flexible Capacity Savings Flexible Capacity Savings * Subject to a minimum commitment
  17. 17. HPE Flexible Capacity options From Upfront Investment ahead of Revenue to Consuming Infrastructure as a Service: pay only for the servers, storage, networking capacity, software licenses, support, and services you actually need and use each month Monthly Payment Includes1 – Servers – Storage – Networking – Software – Services – 3rd Party considerations Variable usage = variable payment – Financially, operating at 100% utilization – No upfront costs & no budget surge when you are at capacity – Business cost aligns with business demands 1 Minimums apply below certain usage levels – Software defined Storage / – Hyperconverged – Flexible VM metering, monitoring, billing – Helion OpenStack products – Certain Microsoft Azure svcs – Servers Per blade or VM – Storage Per GB – Network Per Port – Converged Systems for SAP Hana – HPE Software And SaaS – Support Service Provider’s environment – Microsoft, VMWare, Red Hat operating environments – Microsoft Azure Per VM – HPE Helion OpenStack
  18. 18. TIME VALUE OF MONEY Capex Vs Flexible Capacity -> Over-Provisioning –> 0 - 30% lesser cash deployed monthly due to Pay-per-Use in FC (80% minimum commit level) 00.00 50,000,000.00 100,000,000.00 150,000,000.00 200,000,000.00 250,000,000.00 1 2 3 4 Total Annual Purchase Costs(INR) 00.00 100,000,000.00 200,000,000.00 300,000,000.00 400,000,000.00 1 2 3 4 Total Purchase Costs(IN R) Cost of Cash over time: Capex Vs FC -> FC Cheaper by 38-40% Capex vs FC (Currency: INR) Y1 Y2 Y3 Y4 Cumulative Cash Cost of Funds deployed 8% 8% 8% 8% Cumulative Cash Deployed in Capex 20,08,42,041 23,55,16,908 27,62,56,587 32,30,64,075 32,30,64,075 Cost of Cash Deployed in Capex 1,60,67,363 1,88,41,353 2,21,00,527 2,58,45,126 8,28,54,369 Cumulative Cash Deployed in FC Model 4,92,98,375 11,45,13,865 18,64,15,770 26,69,90,430 26,69,90,430 Cost of Cash Deployed in FC Model 3,94,3870 91,61,109 1,49,13,262 2,13,59,234 4,93,77,475
  19. 19. FC Includes a Rolling window with Technology Refresh Assuming ‘useful life’ of datacentre equipment is 4 years: EOL EOL EOL EOL EOL • All HW/SW installed in Year 1 is refreshed in Year 5 • For HW/SW installed in year 2, refresh is done in year 6 • For HW/SW installed in year 3, refresh is done in year 7 • For HW/SW installed in year 4, refresh is done in year 8
  20. 20. As Hybrid becomes the fabric of IT Hybrid-Ready IT with HPE Flexible Capacity • HP Flexible Capacity: Pay-as- you-grow capacity • New metering and payment per virtual machine • New expansion to HP Helion Public Cloud • Hybrid IT must be seamless – One pool of capacity • IT-as-broker – Some workloads can use public cloud, some stay on premises • Enterprise quality support required for all Hybrid IT • Increase agility – Ready on demand to match business growth • Flexibility – Provision for immediate needs in minutes, not hours • Hybrid Support enables the same enterprise-quality support as in the data center today Features Problems it solves Customer benefits
  21. 21. Flexible Capacity End to End Process Flexible Capacity Process repeats with invoicing and data collection Monthly invoice sent to customer Usage report on FC portal Metering and data collection enabled and data is gathered HPE installs, configures systems and meters Hardware & Software Shipment Sign Contract Requirements and business drivers 17 35 26 4
  22. 22. What do customers say about Flexible Capacity?
  23. 23. Example: Predictable cost & high-performance Storage infrastructure Large Multi-National Telecom Equipment Manufacturer with more than 33,000 active patents, 8 Nobel Prizes shared by 14 Bell Labs researchers From cash flow and budget perspective - they needed a complex and cost-effective solution (paying for what they use) tailored to their technical requirements so they could easily invest in their own IT projects From the infrastructure perspective - they had to de-risk critical business related infrastructure by reducing heterogeneous and legacy platforms and move to new future-state infrastructure. From usage perspective - because the storage was growing dramatically their capacity required an instant upgrade They required from their future vendor: zero impact of change, guaranteed continuous IT-operations, OPEX model for capacity ramp-up and pay-as-you consume model ensuring business and cash flow stability. Customer Value - Deferred Cash expenditure - Optimization of schedule for future state platforms - Reduction in overall infrastructure spend - Refresh plans executed well in advance of EOSL - Key financial KPIs achieved for both savings and cash protection - Reduction in run-rate costs - Additional storage as a back-up environment for data center in India - Monthly invoices for current customer's use of capacity and storage Customer Business Challenges
  24. 24. HPE Flexible Capacity: Agility and confidence – Zero up-front capital— utility based billing model – Optimized to usage— don’t overprovision – Pay per use*, match cash flows to usage Cash Pay for what you use* Confidence Enterprise-quality support – Improve operational efficiency – Build IT stability – Elastic—provision more capacity in minutes, not weeks – Unlimited—refreshed as it is used Capacity Time-to- market Control On premises when you need it – Legacy workloads – Privacy – Latency – Sovereignty – Security, compliance * Subject to minimum capacity commitment
  25. 25. Thank you Many customer videos are available on Youtube. Go to Youtube.com and search for “HPE Flexible Capacity”

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