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Leveraging the New Economics of Converged Systems

Leveraging the New Economics of Converged Systems

As business and IT leaders embrace digital transformation and Third Platform technologies such as cloud computing, mobility and big data analytics, they are facing a new reality in how IT infrastructure should be deployed and managed to serve the needs of the organization. The data center is no longer merely an enabler of back-office business functions. Rather, it is now the heart of the business, the critical differentiating factor in driving innovation, agility and cost efficiencies.

For strategic decision-makers such as CEOs and CIOs, the shift to digital platforms and the emerging role of IT as a business differentiator is creating a new paradigm for evaluating and judging technology investments. Whether it is public cloud services, private cloud infrastructure, converged solutions or any other IT modernization initiative, technology investments must reflect the new economics of today’s business environment. In particular, they must enable:

  • Innovation through IT simplicity: IT teams need to spend less time keeping the lights on and more on strategic endeavors. Infrastructures must be easy to deploy, manage and scale, leveraging automation and orchestration to support innovation and agility.

  • Accelerated time to value: Development teams must be empowered with the infrastructure, tools and services they need to develop new applications and services much more quickly than traditional data center infrastructures and development cycles allow.

  • A services-oriented/software-defined model: IT teams must adopt a services-oriented model, leveraging highly virtualized, software-defined platforms that support cloud capabilities such as resource pooling, self-service provisioning and elastic scalability.

  • Lower costs: IT teams must deliver cloud economics through on-premises infrastructures while ensuring the highest levels of performance along with the proper security and compliance safeguards for today’s applications.

  • Higher levels of availability: Businesses can’t afford downtime, so the infrastructure has to be not only up and running quickly, but also highly reliable and resilient.

The critical role of convergence
Given these challenges, it should come as no surprise to anyone in IT organizations that converged solutions are playing a huge role in facilitating and driving these new economics. Converged solutions are much simpler for IT to deploy, while enabling significant benefits in agility, speed to market and total cost of ownership (TCO). In fact, the market for converged infrastructure is growing at a compound annual rate of more than 24% and projected to exceed $33 billion by 2019.1

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Separate studies from two leading IT research organizations illustrate just how effectively converged solutions can support the new economics of IT, emphasizing characteristics such as simplicity, agility, lower TCO and high availability. One study, by IDC,2 cited a wide range of key economic benefits achieved by organizations using Vblock® Systems from Dell EMC, including:

  • Improved IT agility, which reduces the time needed to deliver application services and provision data center resources—4.4 times faster to market for new services and products.

  • Greater business innovation as IT staff spend less time “keeping the lights on” and more time on innovation projects, including mobile and analytics—41% less time keeping the lights on.

  • Increased performance, driving higher levels of customer service and satisfaction—4.6 times more applications developed and delivered per year.

  • Higher levels of cost-effectiveness, scalability and reliability in the technology infrastructure—96% less downtime.

Meanwhile, a separate Total Economic Impact Study™ by Forrester Consulting showed similar benefits among customers of converged infrastructure solutions from Dell EMC.3 Based on interviews and analysis of three organizations that deployed Dell EMC converged infrastructure, the study concluded that the organizations were able to achieve the following results:

  • 25% increase in application developer productivity

  • 20% savings through infrastructure cost avoidance

  • 30% increase in IT operations efficiencies

  • 5% to 10% increase in business productivity

  • 15% to 20% reduction in security and compliance costs

Conclusion
IT leaders face critical challenges in supporting IT modernization and digital transformation. They must deliver more value to the business while reducing TCO. They must support services-oriented models that require greater management simplicity and innovation than ever before. And they must ensure that their infrastructures deliver high performance along with resiliency, reliability, security, availability and compliance protections.

Converged solutions allow IT teams to accomplish all of these goals through simple-to-deploy and simple-to-manage infrastructures that embrace IT modernization and innovation through software-defined models. If your organization hasn’t yet explored the value of converged solutions, it is time to take that first step.

1Converged Infrastructure Market Worth $33.89 Billion by 2019,” MarketsandMarkets, August 2014
2The Business Value of VCE Vblock Systems: Leveraging Convergence to Drive Business Agility,” IDC, May 2015
3A Practical Guide for Evaluating the Value of VCE Converged Infrastructure for Data Center Modernization,” Forrester Research, March 2016