Modernize Applications And Infrastructure While Taking Advantage Of Alternative Sourcing
Modernize applications and infrastructure while taking advantage of alternative sourcing
Listen to the podcast. Read a full transcript or download a copy. Sponsor: HP.
The latest BriefingsDirect panel discussion centers on improving datacenter productivity by leveraging all available sourcing options and moving to modernized applications and infrastructure.
IT leaders now face a set of complex choices, knowing that discretionary and capital IT spending remain tight, even as demand on their systems increases. Economists are now seeing the recession giving a way to growth, at least in several important sectors and regions. Chances are that demands on IT systems to meet this growing economic activity will occur before IT budgets appreciably go up.
So what to do? A panel of experts examines here how to gain new capacity from existing data centers through both modernization and savvy exploitation of all sourcing options. And by outsourcing smartly, migrating applications strategically, and modernizing effectively IT leaders can improve productivity while still under tightly managed costs.
One choice that may be the least attractive is to stand still as the recovery gets under way and demands on energy and application support outstrips labor, systems supply, and available electricity.
Learn more on managing for growth by examining three datacenter transformation examples that uncover how effective applications and infrastructure modernization improves enterprise IT capacity outcomes. The panel also examines modernization in the context of outsourcing and hybrid sourcing, so that the capacity goals facing IT leaders can be more easily and affordably met, even in the midst of a fastchanging economy.
Please welcome the panel: Shawna Rudd, Product Marketing Manager for Data Center Services at HP; Larry Acklin, Product Marketing Manager for Applications Modernization Services at HP, and Doug Oathout, Vice President for Converged Infrastructure in HP Enterprise Services. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.
Here are some excerpts:
Oathout: When you look at the budgets still being tight, but business is starting to grow again, IT leaders really need to look strategically at how they’re going to tackle their budget problems.
What they need to do is to start to think about how, and what major projects they want to take on, so that they can improve their cash flow in the shortterm while improving their business outcomes in the longterm.
In the past, companies have looked at outsourcing as a final step, versus an alternate step in IT. We’re seeing more clients, especially in the tight economy, that we have gone through, looking at a hybrid model.
There are multiple sourcing options, there are multiple modernization tasks as well as application culling that they could do to improve their cost structure. At HP we look at modernization of the software and we look at outsourcing options and cloud options as ways to improve the financial situation and to improve the longterm cost structures.
There is a model evolving, a hybrid model between outsourcing and insourcing of different types of applications in different types of infrastructure.
Acklin: If you look at your current spend and how you are spending your IT budgets today, most see a steady increase in expenses from yearbyyear, but aren’t seeing the increases in IT budgets. By doing nothing, that problem is just going to get worse and worse, until you’re at a point where you’re just running to keep the lights on. Or, you may not even be able to keep up.
We call that “the cost of doing nothing.” That’s the real challenge.
The number of changes that have been requested by the business continues to grow. You’re putting bandages on your applications and infrastructure to keep them alive. Pretty soon, you’re going to get to a point, where you just can’t stay ahead of that anymore. This is the cost of doing nothing.
If you don take action early enough, your business is going to have expectations of your IT and infrastructure that you can’t meet. You’re going to be directly impacting the ability for the company to grow. The longer you wait to get started on this journey to start freeing up and enabling the integration between your portfolio and your business the more difficult and challenging it’s going to be for your business.
Rudd: Clients or companies have a wider variety of outsourcing mechanisms to choose from. They can choose to fully outsource or selectively outtask specific functions that should, in most cases, be able to provide them with substantial savings by looking at their operating expenses.
It’s not going to get any cheaper to continue to do nothing. To support legacy infrastructure and applications, it’s going to require more expensive resources. It’s going to require more effort to maintain it.
The same applies for any nonvirtualized or unconsolidated environment. It costs more to manage more boxes, more software, more network connections, more floor space, and also for more people to manage all of that.
The risk of managing these more heterogeneous, more complex environments is going to be greater a greater risk of outages and the expense to integrate everything and try to automate everything is going to be greater.
We help clients maintain their legacy environments and increase asset utilization, while undertaking those modernization and transformation efforts. From an outsourcing standpoint, the types of things that a client can outsource could vary, and the www.instagramfollowershacksz.com scope of that outsourcing agreement could vary the delivery mechanism or model or whether we manage the environment at a client facility or within a leveraged facility.
Working with a service provider can help provide a lot of that insurance associated with the management of these environments and help you mitigate a lot of that risk, as well as reduce your cost.
The risk to the client, to the client’s business, should be better mitigated, because they’re not having to coordinate with four or five different vendors, internal organizations, etc. They have one partner who can help them and can handle everything.
Oathout: As you look at service providers or outsourcers, there is a better menu of options out there for customers to choose from. That better menu allows you to compare and contrast yourself from a cost, service availability, and delivery standpoint, versus the providers in the marketplace.
We see a lot of customers really looking at: How do I balance my needs with my cost and how do I balance what I can fit inside my four walls, and then use outsourcing or service providers to handle my peak workloads, some of my noncritical workloads, or even handle my disaster recovery for me?
So IT managers have choices on where to source, but they also have choices on how to handle the capacity that fits within their four walls of the data center.We can get a 10:1 consolidation ratio on servers. We can get a 56:1 consolidation ratio on storage platforms. Then, with virtual connectivity or virtual I/O, we can actually have a lot less networking gear associated with running those applications on the servers and the storage platform.
So, if we look at just standard applications, we have a way to migrate them very simply over to modern infrastructure, which then gives you a lower cost point to run those applications.