In the traditional IT model, infrastructure is built out in anticipation of business needs. As a result, much of the capacity purchased is initially unused and ties up capital resources that could be better used for more effective business needs. As actual infrastructure usage increases, additional hardware is required and another capital expenditure is made to acquire the additional physical resources to support anticipated future needs.
Public cloud offerings were designed to provide scalable capacity on an as-needed basis without any capital expenditures. This seems a likely solution to meet corporate financial goals of reducing capital waste. Unfortunately, Public clouds do not offer the security, regulatory compliance and governance that many enterprise level organizations require.
An ideal solution would be a private cloud that is right-sized to meet the immediate needs of the business. One that is scalable and provides expanded “on demand” capacity to support increased workloads. This is where creative financing comes in.
Public clouds do not offer the security, regulatory compliance and governance that many enterprise level organizations require.
IIS can leverage financing programs that allows an organization to purchase the solution they need to meet their current needs. IIS will ship sufficient hardware (servers, storage and networking) to meet 110-130% of the anticipated load but the assets remain on the finance company’s books until they are used. As the excess assets are consumed, IIS provides additional assets to maintain the desired buffer. This solution allows organizations to provision additional “capacity on demand” in a matter of minutes while bypassing any type of procurement process. Since the equipment is provided as part of a service agreement, there is no capital expenditure thus shifting the financial load from capex to opex. Some financial models even allow for the remaining unappreciated assets to be removed from the capital budget and moved to opex by including these costs as part of the cloud solution provided.
Combined with a private cloud software solution from HP or VMware, this solution can provide a self-service portal that would allow corporate business units to deploy their own compute resources internally, much the same way that they would using a public cloud provider. By staying on premise, the organization gains the benefits of increased control and security, support for legacy applications and reduced latency. Leveraging creative financing allows organizations to provide the agility required by business, while reducing capital waste and maximizing cash flow.