Challenges at Midmarket Companies
Midmarket organizations are challenged by infrastructure complexity, often impacting their ability to address business and IT requirements in a timely fashion. They also strive to improve service delivery while reducing costs.
According to ESG’s 2015 IT Spending Intentions research report, the average expected net increase in 2015 IT budgets is 3.33% for midmarket organizations; as a result, budget constraints often limit midsize organizations’ ability to stay ahead of the innovation curve. That means midmarket companies look for savings in other places to fund innovation and improved service delivery.
A Computerworld 2015 Forecast Study supports this. The survey found that for organizations whose single most important technology project is modernizing/replacing legacy systems, the primary goal was cutting costs. This data suggests that organizations are shifting to an innovation focus versus run-rate investments.
A major initiative to modernize infrastructure is virtualization—and most organizations have virtualized most of their production servers. Recent research from ActualTech Media found that 61% have virtualized more than 75% of production servers, and 86% have virtualized more than 50%. These companies are now looking for ways to virtualize more of their infrastructure, beyond servers. That’s where hyperconverged infrastructure comes in.
Hyperconvergence Helps Midmarket IT
Hyperconverged infrastructure is a virtual computing infrastructure solution that seamlessly combines all of the functionality of a data center in an appliance form factor, which improves the speed and agility of deploying infrastructure for virtual workloads, and introduces significant cost savings. SimpliVity hyperconverged infrastructure converges all IT “below the hypervisor” into an x86 building block.
In ActualTech Media’s 2015 State of Hyperconverged Infrastructure report, midsize enterprises are slightly more aggressive than all respondents for current hyperconverged infrastructure adoption. In addition, one-third more of midmarket respondents expect to deploy hyperconverged infrastructure this year. The interest in hyperconverged infrastructure appears to be fueled by midmarket companies’ desire to improve operational efficiency, upgrade/refresh hardware and reduce spending. Compared with all survey respondents, midsize enterprises are 40% more likely to pursue hyperconverged infrastructure due to hardware upgrade/refresh cycles.
The survey also found the top three criteria for selecting a hyperconverged infrastructure solution at midsize enterprises are high availability, cost/ROI, and ease of scale. Midmarket companies are also 20% more likely than all respondents to prioritize criteria, such as single vendor and support model, and policy management at the VM level. The latter is not surprising since this introduces management and maintenance time savings, aiding in lower run-rate expenses.
For current midmarket adopters, the top benefits realized are inline with expectations. Users saw greater operational efficiency, accelerated deployment time, improved backup/recovery and disaster recovery, improved scalability, and cost savings.
For midsized organizations to meet their business and IT challenges, while reducing costs, modernizing data center infrastructure is key. Doing so with a solution like SimpliVity’s hyperconverged infrastructure that combines all of the IT components and services below the hypervisor packaged as a single SKU not only reduces acquisition costs and deployment time, but also delivers longer-term operational efficiency.
Learn more about SimpliVity hyperconverged infrastructure.