Don’t Make Me Buy Anything Unless I Must
With the recovering economy, there is a reluctance to purchase capital equipment with scrutiny of every cent spent. And solid IT is expensive and capital intensive.
The problem with traditional IT infrastructure is that it has to be designed for peak computing loads or performance suffers with high demand. While most companies don’t have to deal with 10 million fans trying to buy 500,000 Paul McCartney tickets at once, there are times of higher and lower demand for most organizations.
Most data centers use a fraction of their capacity during normal operation, some industry estimates are as low as five to 15 percent for servers and networks, 30 percent for storage. This level of inefficiency wouldn’t be tolerated anywhere else in the organization.
Current IT designs don’t allow for turning off what you don’t need like you would with lights and air conditioning; in general, you have to power and cool the entire infrastructure whether you are using it or not.
Yet with the economic uncertainty, organizations are reluctant to purchase for future need when they can’t even accurately predict what the future holds. A much more attractive business model is to purchase utility-style cloud IT services, only paying for what they need when they need it.
This means moving from a fixed-cost capital-expense intensive IT infrastructure model to a variable-cost operating-expense intensive model, an attractive proposition for those who want to conserve cash and still want the option of rapidly adding capacity when needed.
Ask Yourself or Your Board…
Would we be better served by a variable-cost operating-expense IT cost model that we can quickly dial up or down or a fixed-cost capital-expense IT model that is less flexible?
Ask Your CIO…
- What is our average operating utilization for our servers, network, and storage?
- When do we have peak system usage?
- How much of our capacity do we use then?
- What causes the peaks?
- How often does that occur?
- What does it cost us to keep that spare capacity on-line for those situations?