Operational run rate expenses are most often the lion’s share of an IT budget. These are the fixed and constant costs, such as staff salaries, outsourcing, facilities costs, power and cooling, maintenance fees, and the like. These fixed costs are often referred to as “keeping the lights on.” Then there’s the rest of budget—more likely a smaller percentage of the overall IT allocation—that is used to fund IT investments in new projects and innovation.
High fixed costs means that organizations have less flexibility to be responsive to market conditions, so changing the ratio of fixed and variable costs is key. What’s the typical split? The 70-30 rule often applies. That is, 70% for operational run rate and 30% new projects. However, an ESG IT Spending Intentions Survey actually found a 62-38 split.
If you think about your monthly household budget, you have your own “keep the lights on” costs, such as mortgage or rent, utilities, car or travel expenses, food and entertainment, and other fixed expenses. If you’re trying to set aside more funds for savings or the purchase of a big ticket item, there are a few approaches.
As illustrated in this chart, there are tactical and strategic measures you can take that will yield short- and long-term benefits. Tactical/short-term identifies the fast ways to trim expenses and provide a temporary advantage, but it isn’t intended to be a long-term strategy. Strategic/short-term is typically a compromise or a stopgap to the ultimate goal that will garner quick results. Tactical/long-term identifies fast methods to achieve savings that achieve benefits over a longer period of time. And, finally, strategic/long-term includes critical activities to meet goals that benefit the goal over a longer period of time.
These same ideas can be applied to your IT environment as well. Hyperconverged infrastructure from SimpliVity can have an impact across tactical and strategic, and the short-term versus long term.
Hyperconvergence describes a virtual computing infrastructure solution that seamlessly combines all IT functionality below the hypervisor in an x86 form factor to create a single scalable resource pool. It simplifies IT, reduces costs, and improves the speed and agility of deploying virtual workloads. Hyperconverged infrastructure scales by adding additional units or nodes; and enables management of aggregated resources across nodes as a single federated system.
So how does SimpliVity hyperconverged infrastructure impact the IT budget? While there are aspects of savings in all of the matrix quadrants that can be delivered by SimpliVity hyperconverged infrastructure, the real benefit is transformation. SimpliVity hyperconverged infrastructure simplifies IT; eliminates infrastructure silos; scales on demand; and streamlines infrastructure acquisition, deployment and management, enabling IT to meet aggressive cost-cutting goals while introducing transformation that delivers long-term benefits.
Learn more about the current state of hyperconverged infrastructure in ActualTech Media’s recent report.