2. Time to value
Leading enterprises will be able to alter their digital DNA continuously
2
Idea
Value
Value
Value
Continuous
value
creation
People DataApps
Today Tomorrow
Idea
Value
Time Time
3. Challenges CIOs face today
3
Agility to move
quickly Cost and ROI
– Need to increase innovation,
not delay it
– Improve time to market
capabilities
– Evolve to hybrid IT
– Manage cost across private
and public cloud
– Optimize cost and
efficiencies
– Gain financial flexibility
Deliver a great
experience to
customers
– Operate a stable, efficient IT
– Manage complexity and risk
in hybrid IT
– Protect data, privacy, and
confidentiality
4. Challenges CFOs face today
4
Quickly seize new
opportunities
More flexibility,
reduce cost
– IT as an innovation engine –
able to move quickly
– Reduce business risk of
under-provisioned IT
– Share financial risk if
possible
– Eliminate over-provisioning
– Reduce cost of IT
– Flexibility in how presented
in financial statements
– Preserve capital for higher
yielding investments
Closer alignment
of IT and Business
– Dynamically align
infrastructure costs to
business needs
– Manage capacity closely,
increase utilization
– Compliant, secure IT
services
5. A dilemma for IT leaders
“I want a public cloud experience,1 with the benefits of on-premises IT”2
5
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
1 Ease of start-up, several pricing models, variable payment, flexible usage for Compute, storage, and networking
2 Control, security, legacy workloads, lower latency, data location, enterprise-grade SLA from HPE Technology Services
Traditional
IT
Public
cloud
Private
cloud
Managed
cloud
6. Flexibility+Level-of-Service
Capital Purchase Lease Variable Monthly Expense
Customer Sourcing Requirements
Financial Agreements (CAPEX) Services Agreements (OPEX)
Multiple One Time Purchases
Single Service AgreementPrivate Cloud
Finance
Capacity
on-demand
Lease
Hybrid Cloud
HPE Flexible Capacity
Public Cloud
Journey Towards Consumption based Models
– A solution for all customer scenarios
7. Leveraging HPE Flex Capacity – Align Capacity and Demand
December 2015, #c03791148 7
Monthly Expenses Aligned With Actual Use Versus Incurred Ahead / Regardless of Use
8. • 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*
• Facilitate cloud migration
Capacity ahead
of demand
Traditional purchases (CAPEX)
Buffer
Compute needed and invoiced
Time
$
Minimum commitment level
Flexible
Capacit
y
Savings
Flexible
Capacit
y
Savings
* Subject to a minimum commitment
HPE Flexible Capacity Services
9. 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
9
Monthly Payment Includes1
– Servers
– Storage
– Networking
– Software
– Services
– 3rd Party
considerations
Variable usage = variable payment
• Usage = Billing
• Usage = Billing
• Usage = Billing
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
– Software Per License
– Converged Systems for SAP Hana
– HPE Software And SaaS
– Support Service Provider’s environment
– Microsoft Azure Per VM
– HPE Helion OpenStack
10. HPE Flexible Capacity: Ideal for All Customers
10
– Conserve capital – no upfront
expense
– Optimized to usage – don’t
overprovision
– Pay per use1, align to actual
metered usage
Cost: Pay for
what you use
Speed: Time-to-
market
Reduce business &
operational risk
– In the privacy of your own
datacenter
– Enterprise-grade support
– A partner to share capacity risk
1 Subject to a minimum commitment
– Elastic – provision more
capacity in minutes, not months
– Unlimited – refreshed as it is
used via simple change order
– Ready – move quickly on
business opportunities
11. How is HPE Flexible Capacity unique?
…a public cloud experience with the benefits of on-premises IT
11
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
12. Flexible Capacity End to End Process
12
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
Flexible
Capacity
13. 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
14. HPE Flexible Capacity Cost Comparison 4 years
Based on the IT requirements for the analysis projects the following investments for
a traditional purchase acquisition plan compared to the proposed HP FC Premium
solution*.
4 Year Cash Flow Comparison (INR)Year 1 Year 2 Year 3 Year 4
Purchase
Annual HW + SW. Price (INR) 467,333,750 147,761,476 124,417,224 229,520,416
Annual Services Price (INR) 93,717,947 33,490,390 22,667,743 45,242,221
Total Annual Purchase Price (INR) 561,051,697 181,251,866 147,084,967 274,762,637
Total Purchase Price (INR) 561,051,697 742,303,564 889,388,531 1,164,151,168
HP FC Solution
Total Annual HP FC Price (INR) 120,765,940.39 185,997,455.09 242,764,805.95 297,822,999.81
Total HP FC Price (INR) 120,765,940.39 306,763,395.49 549,528,201.44 847,351,201.25
Investment Analysis (INR) Purchase HP FC Difference
Total 4 Year Price (INR) 1,164,151,168 847,351,201 -316,799,967 -27.21%
Net Present Value based on monthly payments (INR)1,070,284,711 734,857,802 -335,426,908 -31.34%
ROI will be reduced to 1 year in FC model in comparison to 4 Years in the traditional model
15. Getting started
– Flexible Capacity Discussions
– Scope your IT Hardware requirements
– Align to business needs
– Identify people/process/technology
improvements
– Together, we design your Flexible
Capacity experience
– For more information, please visit
www.HPE.com/services/fc
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