Consumption-based infrastructure - the future has arrived in STORM!

Offering customers optimal solutions tailored to their business has always been the guiding thread of our business. Following the latest market trends, in cooperation with HPE, we can offer our customers the use of consumption-based infrastructure. The "pay-per-use" model gives companies the flexibility to scale resources up or down, according to current needs. You can read more about this model in the article.

HPE has decided to offer IT resources to the market as a service that the user will pay through monthly bills according to actual consumption, and these resources, unlike the classic Cloud story, will be located at the user’s location. Resources that will be available in this way include HPE servers, storage systems, SAN switches, and data backup devices. Resources that will be available in this way include HPE servers, storage systems, SAN switches, and data backup devices.

What is it about and why is this modality better than renting resources in the public Cloud or buying your own IT infrastructure?

When purchasing your own IT infrastructure, the sizing of the same is done to meet the peak load and the planned future growth. Thus, in addition to making a capital investment and paying for the equipment immediately, the user binds the funds to resources that are not currently needed or are needed only at a certain time in the month or year, but are purchased because the user thinks he will need them in the future. Weather they be needed in the future or not, the user paid for them even before he started using them which is not optimal because he was able to invest these funds in his primary business.

What the consumption-based infrastructure option HPE offers, and currently no one else on the market offers, I will plastically explain with an example.

Consumer-based business models allow consumers to use products and services only when needed, in other words, consumers pay only for resources that have actually been used and only for the period for which they were used.

The user currently requires IT resources which are defined as 60 units of measurement. The unit of measurement is defined as the total consumption of those resources that are measured, such as server memory usage, number of TBs used on the storage system, etc. HPE delivers to the user's location IT resources worth 70 units of measurement. Each month, the user receives an invoice for exactly how many units of consumption he spent that month. In the beginning, it was those 60 units.

When his monthly consumption increases to 65 units, HPE delivers more IT resources worth 5 new units (75 in total) to his location, and the user pays a monthly bill for those 65 units actually spent.

Contracts for such lease of IT resources can be signed for several years 2, 3, 4, 5… according to the wishes and needs of users.

Also, HPE guarantees that the price of the unit of measurement will be identical at the beginning of the contract as for 3 or 5 years, or for the entire duration of the contract. Indeed, if resource consumption rises, prices per unit of measure will even fall. The reason for this is the consumption classes, for example, for TB consumption in the class from 0 to 50TB, the user will pay 1TB of the monthly price x, and in the class from 50 to 100TB, for 1TB will pay the monthly price x minus e.g. 10%, etc.

Is the consumption-based model cost effective?

The advantages of this way of leasing IT equipment are obvious. In a world where a mix of local, public, and private systems, as well as cloud applications, make up the IT infrastructure, traditional models can not provide the right balance of agility, control, and scalability. To maintain a competitive advantage, it is crucial to have an IT model that helps a company adapt quickly to a changing technological environment. And that is the biggest advantage of a consumption-based IT infrastructure. It is a model that allows you to pay only for those resources and capacities that you need at a given time, thus reducing CapEx as well as the costs associated with traditional procurement processes.

Such IT spending models enable rapid expansion of infrastructure when it is necessary to meet the requirements of new projects.

You do not have a capital investment in IT equipment and you can redirect these funds to everything that can make you more competitive in the market in which you operate (new products, development, etc.).

You only pay what you spend that month, rental prices are defined in advance for the entire duration of the contract and there are no unpleasant surprises.

You are flexible when it comes to scaling resources up and down, and the time to purchase new equipment is shortened.

The equipment is not somewhere in Amazon or Google Cloud, but at your location, and the agreed SLAs are guaranteed by reliable people with whom you already work from HPE and our colleagues from STORM.

For more details about this option, feel free to contact our Sales Department at prodaja@storm.hr.