Enterprise IT is moving towards two technologies: public cloud and hyperconverged infrastructure. Both data center options enable companies to make better use of resources, reduce their technological footprints, and increase scalability. While hyperconvergence offers superior performance, protection, and resiliency, the perception is that cloud is cheaper – but is this true?
The general thought is that hyperconverged implementations hold a higher upfront cost, but make up for it with lowered operational costs down the line, while public cloud deployments promise lower capital expenses (CapEx) but higher operational expenses (OpEx). However, in a recent article, “Data rides boomerang in on-premises vs. cloud computing battle,” by Robert Gates of TechTarget, a Pacific Crest Securities survey found, “Nearly two out of three CIOs (62%) have brought workloads back to their data centers, rekindling the on-premises vs. cloud computing debate and suggesting the cloud may not be the answer for everything.”
This finding is also backed in the study by the Evaluator Group, the analyst group explored the cost benefits of a leading hyperconverged infrastructure provider, SimpliVity, and a leading cloud provider, Amazon Web Services (AWS). The results of the study shed some light on the expenses of hyperconvergence and cloud, from both an operational and capital perspective.
Evaluator Group found that over the course of three years, the cost per VM was significantly lower with hyperconverged infrastructure, citing an up to 49% total cost of ownership savings (TCO) with SimpliVity compared to AWS. Scott Lowe, the author of the 2016 State of Hyperconveged Infrastructure Report, said in the Gate’s article, “Many enterprises have been unpleasantly surprised when their monthly bills from public cloud providers show how much they actually spend.” Affirming that the public cloud is not as affordable as it seems for some organizations.
In the Evaluator Group study, the analyst group found that SimpliVity still offered the key advantages of cloud – agility, elasticity, and scalability – while delivering superior protection, resiliency, and performance. Watch the video below to get the full details of the report.
So, how is it that hyperconvergence is able to offer superior CapEx and OpEx savings compared to the cloud? Well, as Rich Kucharski likes to say, the cloud is like a credit card. Swipe the card, get infrastructure. After all, the cloud operating model is built upon three pillars – self-service provisioning, elasticity to match demand, and a supporting service-driven operating model. In the public cloud approach, however, this credit card spending can spiral out of control. That’s because businesses are paying for this elasticity. Every time they need to scale to meet demand, it’s another charge on their cloud credit card. The architecture of hyperconverged solutions such as SimpliVity, on the other hand, are designed to be elastic without a costly pricing model.
As cloud computing and hyperconverged infrastructure become the backbone of enterprise data centers around the globe, businesses need to be wary of the total cost of ownership for such solutions.