MAKE YOUR BUSINESS CASE
How to Justify an Investment in As-a-Service
PLAY #2
In making the business case for as-a-service, there
are multiple value propositions or use cases. Here are
a few of the most common.
Cost Optimization
"In the next 12 to 18 months, many CIOs are going to
focus as heavily on cost optimization as they are on digital
transformation," said James from NetHealth. "And that's to get
the most effective use of their budgets."
The on-premises cloud services model makes sense in this
regard, he said, "because we'll know that we're not just handing
out storage and compute on an ad hoc basis. We'll actually have
very granular controls and visibility into what teams are
consuming and how to bill that back — whether it be an
improvement from a P&L standpoint, or even to a better
understanding of client consumption models."
By paying only for capacity that is actually used, CIOs can get
a better handle on budgeting and forecasting — and avoid the
risk of overprovisioning resources. In fact, a study by Forrester
Consulting, including an aggregate financial analysis of orga-
nizations using an on-premises IT consumption model, found
average IT CapEx savings of up to 30% in year one, 35% in year
two, and 40% in year three.
Agility
The Forrester report also found significantly faster time
to market among users of on-premises cloud services. The
buffered capacity and ability to quickly scale on-demand
brought efficiencies in meeting project deadlines.
For example, not having to wait during long IT procurement
cycles enabled organizations to quickly develop products and
applications and launch new projects. The average time to
launch decreased by 75%.
In making the business case for the on-prem cloud services model, there are
multiple value propositions or use cases. Here are a few of the most common.
The Total Economic Impact™ of HPE GreenLake, a commissioned study
conducted by Forrester Consulting, May 2020
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