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Modern IT

Modern businesses have full visibility of their cost structures. These companies do not treat IT as a cost that they just pay for. Instead, they have a fully automated environment where their IT costs and infrastructure productivity is directly tied to their revenue. They typically have a high-density datacenter with an optimized TCO model with highly efficient computing environments.

On the other hand, traditional businesses are bogged down by their inability to assess ROI on their IT. Their server utilization ranges from 5-15 percent, with low visibility into their infrastructure. They treat IT as a cost, and they merely consume it. For global corporations, adopting a public cloud is only deferring their decisions and thinking short term in addressing their cost propositions. The right approach is to address costs end-to-end from the grid to the application level and be able to fine-tune the costs in all aspects of development, production and operations.

Technologies like software-defined hyperscale infrastructure and containers, among others, contribute to better asset utilization thereby bringing in direct benefits of cost economics. For example, containers have low runtime requirements and, together with a shared infrastructure, allows for a tremendous increase in resource utilization, thereby reducing the costs. Another example is the dynamic configurability of capacity (versus pre-configured) in software-defined hyperscale infrastructures, which allows you to optimize your operational costs.