The Hybrid Cloud Might be Virtual, But the Savings are Real

Organizations are increasingly considering hybrid cloud infrastructure so that they can leverage public cloud capacity to complement the resources in their private cloud environment. To make it easier to understand the true costs of acquiring and maintaining a hybrid cloud environment with VMware Hybrid Cloud, a detailed study was conducted by IDC. The study found that, in addition to providing agility, efficiency, and scalability, the platform delivers significant cost savings. Craig Stanley, VMware’s Group Product Line Marketing Manager, reflects on the findings.

What is the “why” of your cloud journey? Is it because it’s a corporate directive or you’re looking to make the transformation to digital business or maybe you’re looking at cloud economics and ways to reduce costs and improve resource delivery to your developers?  Whatever the reason, all enterprises are looking to gain the power of on-demand infrastructure, fast outage detection and recovery, and the ability to fully modernize their infrastructure and applications in a secure and cost-effective manner.

In the current data center, IT can ensure security, resiliency, performance, and to some degree, modernized applications. However, to be truly agile, IT must have the ability to produce capacity on demand to developers and applications, which can be difficult, costly, and inefficient to do in the non-hybrid cloud environment. So, Hybrid Cloud is the future of the data center.  According to a recent paper by IDC, entitled “The Business Value of Hybrid Cloud with VMware”, the percentage of organizations spreading their budgets across multiple clouds will “surpass 90% within two years”.

What’s standing in the way? Cost, time, and security.

IDC conducted a detailed study to determine the savings in these areas for organizations using VMware Hybrid Cloud. In this study, they compared the actual operating and migration costs from traditional on-premises infrastructure to private and public clouds.

Some of the key findings are:

  • 69% lower workload migration cost versus public cloud with 71% less staff time needed (IDC Study: Page 7)
  • Workload migrations completed in weeks versus months for public cloud (IDC Study: Page 8)
  • Three-year average ROI of 263% with an average breakeven point of five months (IDC Study: Page 14)
  • Annual average business value estimated at $355,700 per 100 VMs over three years (IDC Study: Page 9)
    • From risk mitigation and user productivity – $173,400 per year per 100 VMs
    • From IT staff productivity – $146,900 per year per 100 VMs
    • From IT Infrastructure cost reductions – $35,400 per year per 100 VMs

Study participants reported cost savings from the ability to have on-demand infrastructure that can be activated only when needed, while still retaining the same tools, interfaces, and systems available to their IT teams. The VMware Hybrid Cloud solution provided these organizations with the ability to easily and securely migrate workloads between on-premises and the public cloud without losing any of the IT investment in technical skills. Additionally, study participants reported that because they were able to easily migrate their applications, they were able to avoid millions in consulting expenses.

Study participants also noted the benefits of having a more consistent, cost-effective, and robust IT infrastructure. Having VMware Hybrid Cloud provided these organizations with a fast track to developing and implementing modernized applications through more distributed and diverse resources, better disaster recovery, reduced risk, and greater speed of resource acquisition.

The VMware Hybrid Cloud solution is the most cost-effective solution for organizations needing to become more agile and modernized through faster resource deployment, easy and secure application migration, and integrating the public cloud into the existing on-premises and private cloud ecosystems. It enables organizations to move to a public cloud much faster than traditional public cloud migrations and without compromising security, breaking the IT budget with non-value-add work, creating a skills crisis, or defaulting on the “technical debt” (i.e. legacy applications).

VMware Hybrid Cloud provides:

  1. Lower migration cost
  2. More efficient workload migration
  3. Fast track to savings and modern applications

For more information about this study, including how study participants benefited from VMware Hybrid Cloud, read IDC’s “The Business Value of Hybrid Cloud with VMware” report.

Also, you can visit ‘Cloud Economics with VMware Cloud’ page and learn more about how VMware Cloud can help you optimize your existing investment with zero downtime by taking advantage of consistent infrastructure from the data center to the cloud.

Below are additional resources  on the VMware Cloud on AWS service: :

 

 

 

 

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About the Authors

Craig Stanley

Group Product Line Marketing Manager / Cloud Economics at VMware

Craig Stanley is a Group Product Line Marketing Manager in the Cloud Economics group. He specializes in economic cost analysis and the art of decision making. Craig has been in the IT industry for over 35 years, including 9 years as a Gartner VP and Research Director and 8 years at VMware. As a Gartner analyst, he specialized in datacenter benchmarking, trends and analysis and authored several research notes. At VMware, Craig has been responsible for developing methodologies that help our customers understand how to effectively connect and align their IT initiatives to their desired business objectives. As a Cloud Economist, he drives conversations around the economic value and benefits of VMware’s Cloud offerings. Craig holds a BS degree from the University of South Alabama and an MBA from The Citadel in addition to a US Patent for a mathematical benchmarking methodology. He is based in the US.

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