Decoding New Challenges

Using VMware on IBM Cloud results in an ROI of 153%

Success in today’s tech-driven, uber-competitive business landscape depends on how fast and seamlessly you execute digital transformation in your organization. And you must know by now that the cloud is a highly coveted enabler in that direction. Hence, cloud adoption is moving northward. According to research from IDG, a whopping 92% of organizations have shifted some or other portion of their IT environment to the cloud.

Now, if you have implemented VMware on-premises or in a colocation facility and are grappling with associated challenges, IBM has a simple, non-disruptive offering to embark on the cloud journey: IBM Cloud for VMware Solutions. But before we move on to the benefits of cloud migration with IBM, here’s a quick roundup of the challenges described above, first.

  • Managing the underlying infrastructure to run VMware workloads is a big headache for enterprises that lack an in-depth understanding of the hardware layer. Consequently, they face a whole gamut of operational, inefficiencies, including overprovisioning.
  • Maintaining a legacy infrastructure also entails huge expenditure. Money is needed regularly to procure new hardware and software, fund employee skilling, and pay for power and space.
  • Organizations are not stagnant entities; rather, they will see growth with time. On a typical trajectory, they start local, then expand countrywide, and eventually go beyond national borders. However, a familiar scenario in this context is that they become out of capacity in their own data centers. Later, to serve a global clientele, they ponder over a fitting cloud provider.
  • Customer satisfaction is another issue preoccupying modern enterprises. But it is easier said than done to get customers delighted. For that organizations must focus on their performance, be reliable, innovate non-stop, and increase their speed to market a product. So, a solution smoothing out these rough edges would be worth considering.
Even though the cloud has hit the mainstream, the stigma around cloud adoption still exists. However, they hesitate to take the plunge because of several valid reasons – fear of data breach, the heavy expense incurred in cloud migration, managing a multi-cloud environment, adhering to compliance, etc. But with IBM Cloud for VMware Solutions, nothing could be further from the truth. With security, savings on equipment, multi-cloud support, and control choices built into the core of the IBM Cloud, migration is becoming a strong choice. If you still require assistance, IBM Migration Factory has got your back.

Here’s how you benefit when you migrate to the cloud with IBM Cloud for VMware Solutions .

  • Security is a deciding factor in embracing the cloud. Do not lose sleep over it since IBM facilitates the integration of several security partners with IBM Cloud for VMware Solutions. Moreover, with effortless security administration and root access control, you are better equipped to significantly shorten the time around investigation and patching.
  • Experiencing downtime is an inevitable aspect of the game. But a robust resiliency plan, like the one that comes with IBM Cloud for VMware Solutions, can put your organization back on track in no time.
  • Productive developers are instrumental in increasing the speed and frequency of application releases. Deploying VMware on IBM Cloud can boost their productivity by 40% when they utilize Red Hat OpenShift, per a Forrester study (registration required).
  • Handling data center intricacies 24/7 should not be eating into your time, which you must focus on growing your revenues and other core business activities. VMware on top of IBM Cloud has been found to slash data center costs by a handsome 40%, so says the same study referred to in the preceding point.
  • Lastly, anything that is part of operations (procurement, provisioning, disaster recovery, or maintenance) is streamlined. Since the staff continues to rely on the same management tools as earlier, there is no need to spend time and money on training the employees in new tools, or hiring from outside for this.
For companies contemplating the financial implications of choosing IBM Cloud for VMware Solutions and trying to discern the potential ROI for such a move, Forrester has created the Total Economic Impact (TEI) framework. The framework identifies key parameters against which companies can demonstrate, justify, and realize the financial impact of implementing IBM Cloud for VMware Solutions. These parameters include:

  • Benefits: The TEI methodology tells companies planning to implement IBM Cloud that they can quantifiably determine the financial implications of certain benefits accrued with the implementation. These include benefits such as reduced data center costs, increased developer productivity, reduced downtime, and improved security efficiency.
  • Costs: This parameter captures all the expenses incurred by the company to reap the benefits of the implementation. The cost involved may not necessarily be quantitative but can also be qualitative. The costs include IBM Cloud for VMware Solutions costs, internal implementation and migration efforts, and the time spent on upfront and ongoing training of operations, security, and developer staff.
  • Flexibility: TEI methodology defines flexibility as the ability of a company to realize additional benefits or business opportunities in the future by implementing IBM Cloud for VMware Solutions today. Companies can choose to invest the cost savings realized with IBM Cloud implementation in building additional capacity or capabilities offered by IBM or IBM partners.
  • Risks: This represents the uncertainty of benefit and cost estimates to be realized the way they have been projected at the start of the implementation journey. Under the TEI framework, a company can find out the exact risk percentage by which it must adjust its cost and benefit projections. This helps the company to assess the financial impact of implementing IBM Cloud for VMware Solutions, practically.
Forrester surveyed five existing IBM Cloud customers and executed a financial analysis on them using the TEI framework. Forrester concluded that these companies, and those like them, will realize benefits worth $4.8 million versus costs of $1.9 million over three years. This implies an ROI of 153%! In essence, no matter how you slice it, the positive financial implications of trusting IBM Cloud for your VMware Solutions will clearly outstrip the expenses.

Cloud is no more a fancy neologism that pops up only during technical conversations. Its game-changing capabilities are being felt across verticals. Investing in IBM Cloud for VMware Solutions is a prudent step towards harnessing the power of the cloud.