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Three ways that Hybrid Cloud can transform your business – and your bottom line

by Colin Brandt

April 13, 2017

For business decision makers, making a major investment in IT can be a challenge; up-front costs can be significant, restricting cash flow and reducing agility. With the arrival of the hybrid cloud, the ability to scale up while still maintaining some infrastructure on-premises is becoming an easy way to break through that initial barrier and help your business focus on what it does best. Here are three ways that Hybrid Cloud can help you save money and get more agile:

Hybrid cloud can pay for digital transformation by cutting a quarter of your IT spend.

When most companies are spending 70-75% of their IT spend on maintenance of existing infrastructure, it’s easy to focus on just keeping the lights on rather than planning for what’s next. The problem is that the IT landscape is changing too fast to focus on what’s now – you need to be able to plan for what’s next.

Hybrid Cloud’s more dynamic and agile solutions do two things extremely well – they scale up or down quickly so you only pay for what you use, and it enables digital transformation in the process. An EMC and IDG Global Research survey found that Hybrid Cloud reduces IT costs by 24%, with 40% of those savings reinvested directly into new digital business initiatives.

Hybrid cloud helps keep cash on hand, improving overall business flexibility.

IT budgets aren’t increasing, but the business is increasingly reliant on IT to meet their goals. By reducing or eliminating high up-front costs, Hybrid Cloud changes the cost structure of IT. While modernizing equipment yields initial CAPEX expenses, the savings in OPEX are immediate, with cash-on-hand across four key areas:

  • Modernization (consolidation, standardization, and virtualization): 15%-17%
  • Operations (automation, elimination of technology silos): 17%-28%
  • Applications (retiring, standardizing, usage-based pricing): 11%-18%
  • Development (agile dev, automated provisioning): 13%-30%

Buying is faster and cheaper than building.

Hybrid cloud yields immediate financial returns whether you buy it or build it, but the trick is that the ratio of savings goes up the more you go all-in. Buying a fully engineered, tested, and proven Hybrid Cloud is the best way to accelerate implementation and realize faster savings.

From EMC and IDG’s research, the total implementation cost of buying is 56% lower than building. Implementation takes three months with buying versus 18 months with building, while reducing ongoing maintenance and upgrade costs by 42%.