Hybrid Cloud: What The CFO Wants To Know

Operating a modern business requires IT organizations to reexamine their infrastructure. No longer can traditional monolithic systems provide the speed, flexibility, scale and security to support the digital businesses that are increasingly driving today’s industries. As the IT landscape continues to evolve and require the adoption of more dynamic, agile solutions, it is hybrid cloud that will power the digital enterprise.

The rapid pace of IT transformation is upon us. IDC predicts that 80% of enterprise IT organizations will commit to hybrid cloud by the end of 2017, forcing CFOs to answer critical questions about how they pay for their infrastructure. Here are three key factors CFOs should consider:

  1. Hybrid Cloud Helps Pay for Digital Transformation

An EMC and IDG Global Research survey found that hybrid cloud reduces IT costs by 24%, with 40% of those savings being reinvested in new digital business initiatives. Hybrid cloud’s value proposition enables digital business while lowering costs.

  1. Hybrid Cloud Changes the Cost Structure of IT

Through our work with organizations across the globe we found that the savings from implementing a hybrid cloud occur 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%

While the first yields CAPEX expenses, all four realize ongoing reductions in OPEX.

3.Buying or Building

Hybrid cloud yields positive financial returns whether you buy or build it. However, buying a fully engineered, tested, and proven hybrid cloud, in my opinion, is the best way to accelerate implementation and realize faster savings. From our 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%.

Digitization is an imperative, and a permanent commitment to faster and more vigorous work and innovation. Hybrid cloud achieves real business and IT savings, opening the door to higher value and greater promise of the digital business.

For more information on digital business, hybrid cloud and the cost saving considerations for the CFO read the latest Dell EMC “Hybrid Cloud: Know Your Cost, Control Your Path”

About the Author: Kevin Roche