FINANCIAL VIABILITY OF HYBRID IT: Deciphering the math ...€¦ · FINANCIAL VIABILITY OF HYBRID IT: Deciphering the math behind the next generation DX strategy SPONSORED BY POWERED

FINANCIAL VIABILITY OF HYBRID IT:

Deciphering the math behind the next generation DX strategy

SPONSORED BY POWERED BY

2 COPYRIGHT © 2019 All rights reserved | www.vccedge.com

Executive summaryThe stepping stone in the journey of digital transformation would be taking care of the IT infrastructure. Now, whether it’s hailing a ride, prepping your tax returns or watching a movie, you can do almost anything on demand. B2B companies too have quickly learned that their customers prefer pay-as-you-go models over being locked into lengthy contracts. The world is now moving towards to “everything-as-a-service (XaaS) world”. This is why the concept of IT as a service plays a pivotal role in the DX journey. But moving to an as-a-service model is no small task.

One, organizations’ requirements of IT resources grow sporadically. As requirements cannot be accurately predicted, organizations tend to over-procure IT resources leading to IT assets remaining underutilised over long periods of time.

Second, its a price sensitive market, with customers becoming more demanding and value conscious.

Third, with the advent of cloud computing, most companies now function under the hybrid IT model. They use a combination of legacy systems, cloud computing, and internal and external IT.

The new role of IT is to act as a broker for all these different choices.

Business leaders are stepping up their efforts to find optimal workload in order to stay relevant in an evolving hybrid IT environment. The goal is getting applications and workloads to serve people across a heterogeneous environment. Hybrid IT can be deployed as a permanent architecture with individual elements of a solution residing in different venues.

When the leadership teams are called upon to take on such Hybrid IT strategy decisions, Finance heads are almost invariably sitting at the center of the operating committee or the leadership teams of their companies. In most cases, they’re the keepers of the strategic-planning process and financial disciplines, and in many cases, a combination of these two becomes a critical enabler of how to drive a digital transformation. The Finance leaders, on behalf of the overall operating committee in the CXO team, must have a good view of that full potential from digital analytics over the next three to five years for their business. There is a clear mandate for them to take the lead and the finance function to provide real-time, data-enabled decision support.

This report seeks to explore the key factors that need consideration when taking decisions around hybrid IT strategy from a finance decision maker’s perspective.

The 5 pillars of finance decision making identified are

The top 3 pillars have a ~70% impact on financial

decision making.

Financial Aspects

Business Value

IT Operations

Regulatory & Compliance

Risk - Financial, Strategic,

Technological

THE 5 PILLARS OF FINANCIAL MANAGEMENT

3COPYRIGHT © 2019 All rights reserved | www.vccedge.com

About the ResearchThe research report navigates and deep dives into the factors to be considered when embarking on the journey of hybrid IT strategy and further investigates the amount of influence of each of the identified factors on the final decision. The research also attempts to deliver expected percentages of improvement on each of the factors on the deployment of the hybrid IT strategy.

MethodologyThe research data used in this report was collected in February/March 2019 by Edge Insights using a combination of web, in-person and phone based surveys to query organizations across India across verticals about what are the parameters that CFO’s take into considerations while preparing for the right mix of cloud and on premise infrastructure. Along with the same the data showed represent KPIs on which CFO’s decide on buying existing applications and infrastructure, Eliminate costly procurement cycles and heavy capital expenditures and help align IT Costs to Business results in a Hybrid IT environment.

As a part of this exercise, Edge Insights executed 30 interviews with finance leaders of Indian enterprises, where 25 discussions were done with enterprises using public cloud and 5 were done with HPE customers who were using consumption based IT model.

Key Findings• 60% of the time the Finance Leaders have a major role in DX decision making• From a Finance Leader’s standpoint, factors like Rate of Return, Cash Flow, Net

Present Value, Business Productivity, Time to Market, Skill Reassignment, Support Costs, SLA’s, Cost of Operations etc play a predominant role which results in Financial Aspects coupled with Business Value and IT Operations have a 70% influence on Hybrid IT decisions

• Consumption based IT service model takes care of cost of configuration and customisation as it is expected to deliver a 5% to 7.8% improvement in Cash Flow and NPV, thus fairing well on Financial Aspects

• Consumption based IT service model riding on improved experience and performance takes care of cost of integration by facilitating higher business productivity, faster time to market and solving issues regarding skill reassignment, thus delivering a positive impact in the range of 5.8% to 8.6% on Business Value parameters

• Deep product knowledge associated with Consumption based IT service model is able to mitigate cost of organisational change, especially taking care of aspects of skills and talent management, hence churning 5% to 7.8% favourable influence on IT Operations

• Security assurance and trust at the core of Consumption based IT service model are the key drivers behind the 5.5% to 8% beneficial effect on Regulatory and compliance parameters

• Culmination of assured security, in-depth knowledge, trust, automated back up data offerings, and prior experience thus helping towards mitigating risks and is expected to positively influence crucial risk parameters anywhere in the range of 6% to 9%


Components of Implementing IT As A Service

IntroductionToday for Businesses to achieve dominance in the market, the only way is through digital transformation. The stepping stone in the journey of digital transformation would be taking care of the IT infrastructure.

This is where the concept of IT as a service plays a pivotal role. IT as a Service (ITaaS) is a technology-delivery method that treats IT (information technology) as a service, providing an enterprise with exactly the amount of hardware, software, and support that it needs for an agreed-on monthly fee. In this context, IT encompasses all of the technologies for creating, storing, exchanging, and using business data.

The premise behind the concept of IT as a service is simple: Offer your internal clients the power of choice, allow them to pay only for what they use, and deliver it speedily. But moving to an as-a-service model is no small task. It involves more external partners and moving parts and therefore a very different mind-set. As your organization moves to a service-oriented model, you will need a strategy.

“By 2020, consumption-based procurement in datacenters will have eclipsed traditional procurement through improved as a service models, thus accounting for as much as 40% of enterprises’ IT infrastructure spending.”

- IDC FutureScapes

Application Management

Technical Infrastructure

IT Management Framework

Service Management

Finacial Model

Culture Process


A major shift witnessed is from build to consume, in particular, enterprises plan to reduce the number of workloads housed in on-premise traditional and virtualized environments, while dedicated private cloud, virtual private cloud, and public infrastructure as a service (IaaS) are expected to see substantially higher rates of adoption.

But one also needs to be cognizant of the fact that the top priority for many IT infrastructure leaders is to reduce their operational costs through efficiency gains. With the cost of servicing of IT infrastructure rising one is constantly doing the balancing act.

With the advent of cloud computing, most companies now function under the hybrid IT model. In reality, organizations use a combination of legacy systems, cloud computing, and internal and external IT. The new role of IT is to act as a broker for all these different choices.

Combining on-premise IT with cloud brings unparallel scalability and flexibility to businesses. A suitable tech platform enables businesses to innovate and transform aggressively. Whether you consider Robotics, AI or any modern IT technology, consuming IT like a cloud operating model is the only way forward.

The term hybrid IT is not just a moniker for private and public cloud IT mashed up together. Rather, it is an operating paradigm that enables IT to address the needs of an expanded group of constituents that includes not just IT operations staff but also application developers and line-of-business (LOB) executives.

The winners will be the businesses that can embrace challenges head-on and transform themselves for the market forces that beckon them. A robust hybrid IT strategy is the way forward in that direction.

The Enterprise ChallengeAs public cloud services gain popularity, business leaders are putting pressure on IT to deliverconsumption-based experiences. At the same time, demands for security and control remainhigh. For IT teams, it’s a catch-22. Building IT on-premises serves compliance, control, and security purposes, but takes a lot of time and effort and upfront capital. Consuming IT from thepublic cloud enables speed, scale, and convenience, but at the expense of on-premises control and unpredictable OPEX charges. Public cloud is known to come with its share of complexity and ease of use issues, lock in with API’s, loss of control, and latency issues. This results in increase in cost, manpower and skill requirement.

The one question that is plaguing the CXO’s is how to decide on the optimal hybrid IT strategy and how to decide on the several options available?

Public Cloud

Hosting - Private Cloud (Shared)

No Cloud

Dedicated Cloud

Private Cloud


The key concern areas to be addressed before arriving at a conclusion are as follows:

• Security is a key challenge: Valuable business data if residing outside of the corporate security boundary can raise concerns for organizations. How cloud providers address this concern is an important evaluation criteria.

• Compliance: Many businesses have cited concerns that third party service providers do not provide sufficient compliance assurances. Documenting and developing a mitigation plan is essential.

• Application performance issues: Some companies are keeping the most performance sensitive applications and storages in their cloud based IT which ultimately results in high costs as public cloud may not provide the adequate requirements for application performance. Or public cloud infrastructure with performance guarantees (if available) may be commercially unviable for the enterprise.

• Total Cost of Ownership: Businesses can save money on hardware but spend far more on bandwidth. This can be a low cost for smaller applications but can be significantly higher for data intensive applications. As a business transfers more core business functions to the cloud this will place added strain on the company’s internet speed and bandwidth.

CFO’s role in the new age digital world60% of the time the CFO has a major role in DX decision making

For chief financial officers the increased emphasis on Hybrid IT strategy decisions will mean that numerous sizable internal funding requests will fall on their desks. The two most important questions for them are likely to be these: Which funding requests deserve priority? And how much financial investment should they get, both in the short and long term? The question is not whether; it’s where and how much their company should spend to compete in an increasingly complex digitalized marketplace. Indeed, it’s up to CFOs to help their colleagues show the ROI generated by digital transformation. How do you prioritize spending the right amount on technology or new talent?

Traditional methods of procuring IT infrastructure involve lengthy procurement cycles and high amounts of upfront payments. From an investment perspective, this practice of capex procurement raises several red flags to the CFO as it involves a dramatic loss of cash reserves and requires the organization to take on the financial risks associated with actually owning the asset.

Further organizations’ requirements of IT resources grow sporadically. As requirements cannot be accurately predicted, organizations tend to over-procure IT resources through the outright purchase (apex) model after forecasting the requirements over long periods of time (typically a 4–6 year horizon). IT resources, as a result, are then over-

Financial Aspects (23%)

Business Value (21%)

IT Operations (22%)

Regulatory & Compliance (19%)

Risk (Financial, Strategic, Technological) (15%)

Top three factors: 70%

1.

2.

3.

4.

5.

What are your consideration parameters for financial measurement that you look at while buying technology?

THE 5 PILLARS OF FINANCIAL MANAGEMENT

1.

2.3.

4.

5.

*The % represents the weightage of the factor on complete decision making


40% influence the decision

making purchase

40% oversee evaluation

criteria

20% share equal decision

making powers

provisioned, leading to IT assets remaining underutilised over long periods of time. When organizational IT requirements go beyond the procured capacity, organizations re-procure more IT resources through the same CAPEX process route. These lengthy procurement cycles lead to periods where the old IT resources are overutilised. This becomes a repetitive process consisting of underutilised and overutilised IT resource cycles, which is adverse to business goals.

Through this research we established the most crucial metrics that CFOs must take into account in their decision making process when they are evaluating public could vs an on-premise infrastructure. Financial factors (Cash flow, NPV, IRR, Payback period, ROI, Revenue alignment), Business value Factors (Time to market, Agility, Scalability, Innovation, Impact on revenue & market share), IT Operations (support costs, vendor lock-in, SLAs, Cost of outages, Variable costs), Regulatory & compliance (Data loss, Data integrity, Legal implications) and Risks (Financial, Technology, Strategic) all play an important while making this decision.

We asked the finance leaders of Indian enterprises whether they see their involvement in buying technology related to cloud?

Our research indicates that there is a major roleplay of Finance team in Cloud services/ vendor onboarding.

Finance plays a very important role in decision making of cloud service/ products providers


Financial Aspects

• Cash Flow 22%

• NPV (Net Present Value) 20%

• IRR (Internal Rate of Return) 16%

• Payback Period 16%

• ROI (Return on Investment) 14%

• RevenueAlignment 12%

Business Value IT Operation

• Business Productivity - Margin Impact 17%

• Time to Market / Business Agility 15%

• Product Innovation 15%

• Skill Reassignment 15%

• Impact on Revenue & Market Share 13%

• Enhanced Experience 13%

• Scalability 12%

• Support Costs 12%

• SLA's - Best Efforts Basis v/s Guaranteed 8%

• Skills and Talent Management 8%

• Cost of Operations 8%

• Credit Notes - Service Credits 8%

• Life Cycle Management 7%

• Productivity Loss 7%

• Cost of Outages 7%

• Vendor Lock-In 7%

• Variable Cost 7%

• Control 7%

• Manpower Cost Optimization 7%

• Cost of Over Provisioning 7%

Regulatory & Compliance

• Back-Up Requirements 28%

• Data Loss 26%

• Data Integrity 24%

• Legal Implications 22%

Strategic Risks• Data Risks 39%

• Proprietary Risks 31%

• OEM Risks 30%

* % denotes the weightage of the factor within the respective group

Technology Risks• Platform Risks 27%

• Price vs Performance 26%

• Over Capacity 25%

• Tech Obsolescence 22%

Risk

Financial Risks• Cost Variance 24%

• Revenue Variance 23%

• Time Variance 21%

• Cost Predictability 18%

• Threshold Limits 14%

From a Finance Leader’s standpoint, factors like Rate of Return, Cash Flow, Net Present Value, Business Productivity, Time to Market, Skill Reassignment, Support Costs, SLA’s, Cost of Operations etc play a predominant role which results in Financial Aspects coupled with Business Value and IT Operations have a ~70% influence on Hybrid IT decisions. Further factors such as Back-Up Requirements, Cost Variance, Data Risks, Platform Risks and others forming part of Regulatory and Compliance parameters and Risk parameters have a ~30% influence on the overall Hybrid IT strategy decisions.

Basis the extensive research that Edge Insights carried out, following were the detailed parameters that CFO’s/ finance leaders use while making any purchasing decisions related to cloud.


How a pay as you go consumption based model fares on all the counts from a CFO’s lens?

Financial AspectsLike most business decisions, consumption based IT model also entails costs. For complete buy-in of the CFO/ Finance head, it needs to pass through the finance radar and qualify. While taking decisions on financial grounds the key performance metrics that play a major role are Cash Flow, NPV and IRR amongst the 6 widely used KPI’s by CFO’s / Finance Heads while choosing a cloud vendor. Public Cloud is perceived to perform better on count of IRR on the basis of vendor reputation, ease of understanding, existing network, and latest feature upgrades all pointing towards cost of implementation.

Consumption based IT service model has a great-er positive impact on the 2 top most components of Financial aspects, namely Cash Flow and NPV. The primary reason attributed to the success is the faster time to value with complete, cu-rated solutions that are ready quickly, and evolve ahead of your needs level of service delivery thus taking care of cost of configura-tion and customis-ation and providing agility.

*expected improvement

Financial Aspects

Portfolio Importance Public Cloud% Improvement*

Consumption based IT % Improvement*

Figures in (%)

Cash Flow 22%4.75 -6.75

5.8 -7.8

NPV (Net Present Value) 20%4.75 -6.75 5 - 7

7.3 -9.3 5 - 7

6.9 -8.9

6.5 -8.5

6.2 -8.2 5 - 7

Revenue Alignment 12%8.4 -10.4

5.5 -7.5

ROI (Return on Investment) 14%

Payback Period 16%

IRR (Internal Rate of Return) 16%


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with a solution that enables you to truly focus on applications and data insights. Maintain security on-premises and avoid platform

lock-in with this open-source database offering.

A Finance Manager with multination-al information technology service and consulting company quotes service quality, deep knowledge, and the past per-formance deliv-ered by HPE as the key driver for the expected improve-ments.

https://www.hpe.com/us/en/services/it-consumption.html


Business Value ParametersAny financial investment should deliver a Business Value to the organisation. It is expected that the enterprise should be able to either attract the best talent, and/or optimize their core business processes, and/or improve customer satisfaction. Businesses can stay more competitive with better process automation, experience better consistency in workflows and boost their overall efficiency and productivity.

Amongst the 7 KPI’s identified and vetted by CFO’s and Finance heads to judge the true Business Value out of a business investment, Business Productivity - Margin Impact plays a pivotal role.

Public Cloud is perceived to perform better on count of Skill Reassignment on the basis of lesser involvement required.

Business Produc-tivity and Time to Market carrying almost 30% influ-ence on Business Value decisions is slated to improve on implementation of a consumption based IT service on account of new technology and better economics with a flexible, pay-per-use model that offers simplic-ity and financial clarity thus taking care of cost of integration across the organization and not just on a point solution basis.


Business Value



Figures in (%)

Business Productivity - Margin Impact 17%5.2 -7.2

5.8 -7.8

Time to Market / Business Agility 15%5.8 -7.8

6.5 -8.5

Skill Reassignment 15% 8.6 -10.6

6.6 -8.6

Product Innovation 15%7.1 - 9.1

5.4 -7.4

Impact on Revenue & Market Share 13%8.2 -10.2

5.8 -7.8

Enhanced Experience 13%5.5 -7.5

5.8 -7.8

Scalability 12%5.6 -7.6

6.6 -8.6


CASE STUDY

Challenge: Scaling up to cater to a rapid digitalization of Payments in IndiaPost-demonetization, massive growth in the online payments combined with the push from GoI towards Digital India, called for a robust and rapid scaling up of processing power

Solution: HPE Greenlake Flexible Capacity business model delivers scale, security and financial benefitsWith a constantly scaling business, a GL FC business model provides for an easy scaling up of infrastructure, built-in upgrades, and no requirement for immediate capex

Results: Positioned for growthFrom an initial customer base of about 30 banks, wibmo now caters to over 80+ banks in India, and is well positioned to expand to overseas customers as well

The next generation of HPE GreenLake Flex Capacity delivers a more modular, streamlined, and cost-competitive experience for HPE

customers. Variable payments based on actual metered usage, rapid scalability using an on-site buffer of extra capacity, enterprise-

grade support, and flexibility on terms to meet your needs deliver a cloud-like experience for infrastructure on-premises

Service quality, new technology used, and prior experience with HPE have been quoted as key reasons to expect marked improve-ments on Business Value parameters on deployment of consumption based IT model, by a Finance Man-ager with a global two -wheeler and three-wheeler manufacturing company.

Wibmo




IT Operations ParametersIn pure digital environments, organizations can no longer afford to take their IT systems offline for maintenance, to introduce new product features or to make system modifications. Pure consumer cloud companies have changed the paradigm and consumers expect their digital products and services to be updated on the fly in the background, while services remain available 24/7.

When judging efficiency of IT Operations through the CFO’s lens, the industry has narrowed down on 13 guiding points. Of these Support Costs followed by SLA’s, Skills and Talent Management and Cost of Operations are 4 dominant factors which are to be considered at the time of IT- Operations decision.

Public Cloud is perceived to perform better on most counts on the basis of prior experience and trustworthiness of the public cloud vendors thus indicating vendor stickiness.

Deep product knowledge is a key enabler for the beneficial effect of consumption based IT service on IT Operations. Simplified IT that’s operated for you, allows to free up resources and add business value thus taking care of cost of Organizational change and Techni-cal readiness, thus making the case for the benefits of change on an ongo-ing basis.


IT OperationsPortfolio Importance Public Cloud

% Improvement*Consumption based IT % Improvement*

Figures in (%)

Support Costs 12%6.5 -8.5

5.8 -7.8

SLA's - Best Efforts Basis v/s Guaranteed 8% 5 -77.3 -9.3

Skills and Talent Management 8%4.9 -6.9

5.8 -7.8

Cost of Operations 8% 5.8 -7.8

6.3 -8.3

Credit Notes - Service Credits 8%7.8 -8.8

4.2 -6.2

Life Cycle Management 7% 5.5 -7.5

7.4 -9.4

Productivity Loss 7%5.7 -7.7 5 - 7

Cost of Outages 7% 3.4 -5.4

7.8 -9.8

Vendor Lock-In 7%7.4 -9.4

3.4 -5.4

Variable Cost 7% 5.6 -7.6

6.6 -8.6

Control 7%8.5 -10

6.2 -8.2

Manpower Cost Optimization 7% 5 - 77.3 -9.3

Cost of Over Provisioning 7%7 - 94.6 -6.6


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Accelerate time to value with plug-and-play configurations. No need to re-engineer the datasets; no security or repatriation

risk associated with shipping your data off to someone else’s data center.

Trained staff, the cost of service, product knowledge, and price point enabling nimbleness into IT Operations are reasons cited for deploying consumption based IT model by a Senior Finance Manager with an Information and Communication Technology Distributor




Regulatory and Compliance ParametersAs market pressures encourage organizations to further cut costs, compliance and business leaders must continue to strategically invest in compliance activities that will expand their risk coverage, embed compliance enterprise-wide, and support business goals and objectives.

Back-Up Requirements is the most important metric when it came to taking Regulatory & Compliance Decision.

Public Cloud is perceived to perform better on counts of Data Integrity riding on the SLA’s signed.

• Consumption based IT ser-vice model wins hands down on counts of Back-Up Requirements and Data Loss which together have a more than 50% influence on Regulatory and Compliance decisions.

• Further being on premise enables proper control over compli-ance, perfor-mance, security thus drives the positive impact on Regulatory and Compliance parameters.


Regulatory and Compliance



Figures in (%)

Back-Up Requirements 28%4.8 -6.8

5.5 -7.5

Data loss 26%5.7 -7.7 6 - 8

6.6 -8.6 6 - 8

7 - 9 6 - 8Legal Implications 22%

Data Integrity 24%

HPE GreenLake Backup: HPE GreenLake Backup delivers on-premises backup capacity that is operated for you; and you pay by how much

you backup monthly—simple as that.




CASE STUDY Challenge: For hospitals moving to cloud has been a challenge from a regulatory perspective, privacy data perspective, and serviceability perspective. Data needs to remain on premises. anonymise data and then compare it on cloud.

Solution: Philps Healthsuite is a platform embedded within Philips medical products making sure it can aggregate all the data from different medical devices inside of a hospital. Helps hospitals take control of their systems and also reduce costs. Philips has partnered with HPE Greenlake for deployment of its platform for seamless implementation.

Security assurance and trust factor on partnering with HPE Greenlake are the primary reason for positive expectations on grounds of Regu-latory and Compli-ance parameters from consumption based IT model, says an Assistant Vice President – Purchase, with an investment and financial services company.

Philips Healthsuite





Risk ParametersFor implementing a successful DX strategy laying out the building blocks of the digital risk strategy is as crucial. The three dimensions to digital risk include Financial risk, Strategic risk and Data risk.

Public Cloud is perceived to perform better on account of being in the comfort zone with regular vendors and vendor reputation.

• The overall posi-tive impact on all risk parameters is a culmination of assured security, in-depth knowl-edge, trust, and automated back-up data offerings.


Financial Risks



Figures in (%)

Cost Variance 24%5.25 -7.25 7 - 9

Revenue Variance 23%7 - 9 6.5 -8.5

6 - 8 6 - 8

6.83 -8.83

6.5 -8.5Cost Predictability 18%

6.33 -8.33 7 - 9Threshold Limits 14%

Time Variance 21%


The overall positive impact on all risk parameters is a culmination of assured security, in-depth knowledge, trust, and automated back-up data offerings.

Technology RisksPortfolio Importance Public Cloud


Figures in (%)

Platform Risks 27%7.5 -9.5

6 - 8

Price vs Performance 26%6.1 -8.1 6 - 8

8.6 -10.6

6.5 -8.5

Over Capacity 25%

5.9 -7.9

6 - 8Tech Obsolescence 22%



• Consumption based IT service customers feel they can mitigate their business risks better due to data security, low cost of support, experienced man power and latest technologies and thus eliminating over provisioning.

Strategic RisksPortfolio Importance Public Cloud


Figures in (%)

Data Risks 39%7.75 -9.75

7 - 9

OEM Risks 31%6.17 -8.17 7 - 9

7.17 -9.17

6 - 8Proprietary Risks 30%

Consumption based IT service by HPE, is able to mitigate business risks better due to data security, low cost of support, experienced man power and latest technologies and thus eliminating over provisioning, says a Business Finance Manager with a leading technology and service provider for the financial services industry.


The HPE GreenLake suite includes complete, curated solutions designed for specific workloads or needs. Each solution comes with advisory and professional services options to further help you with

solution design and integration into your environment

Conclusion As part of the digital transformation journey many Business are investing in and would continue to invest in their on-premise infrastructure along with exploring options with multiple cloud providers.

Customers of consumption based IT services have achieved the best of both worlds with the following benefits:-• Faster time to value with complete, curated solutions that are ready quickly, and evolve ahead of your needs• Better economics with a flexible, pay-per-use model that offers simplicity and financial clarity• On-premises for proper control over compliance, performance, security• Simplified IT that’s operated for you, to free up resources and add business value

Thus eliminating much of what is problematic with traditional IT, namely the time-to-design for a new solution, long procurement cycles, large upfront capital expenses, risky do-it-yourself implementation, and labor-intensive operations.

But, the most agonizing business concern for all business leaders including CIO’s and CFO’s is business continuity and compliance. Whether or not a certain business decision is faring well on counts of Financial Risks, Strategic Risks and or Technology Risks, needs to be assessed. But all attempts at such assessment don’t do justice to the eventuality of an actual loss. The data of an organization is at the heart of all processes. And hence comes with it the need to protect it. Consumption-based IT offers the flexibility of cloud with the control, security, and reliability found in on-premises data centers.


https://www.hpe.com/us/en/services/consulting.html


Glossary

Hybrid IT - is a technique in which an enterprise uses both in-house and cloud based services to complete their entire pool of IT resources.

CXO’s – includes all C-Suites leaders in an organization like CEO, COO, CTO, CIO, CFO etc

Cash Flow – is the total amount of money being transferred into and out of a business, especially as affecting liquidity

Net Present Value (NPV) - is the difference between the present value of cash inflows and the present value of cash outflows over a period of time

Internal Rate of Return (IRR) - is a metric used in capital budgeting to estimate the profitability of potential investments

Payback Period – is the length of time required for an investment to recover its initial outlay in terms of profits or savings

Return on Investment (ROI) - is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost

Business Productivity is a measure of the efficiency of production

Time to Market (TTM) is the length of time it takes from a product being conceived until its being available for sale

Scalability is the capacity to be changed in size or scale

Service-Level Agreement (SLA) is a contract between a service provider and its internal or external customers that documents what services the provider will furnish and defines the service standards the provider is obligated to meet

Cost Variance is the difference between the cost actually incurred and the budgeted or planned amount of cost that should have been incurred

Time Variance is the difference between the standard hours and actual hours assigned to a job. The concept is used in standard costing to identify inefficiencies in a production process. The variance is then multiplied by the standard cost per hour to quantify the monetary value of the variance

Revenue Variance is the difference between the revenue you budget, or expect to earn within a specific period, and the revenue your business actually earns within the same period

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FINANCIAL VIABILITY OF HYBRID IT: Deciphering the math ...€¦ · FINANCIAL VIABILITY OF HYBRID IT: Deciphering the math behind the next generation DX strategy SPONSORED BY POWERED