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Cloud Automation ROI – The business Impact of accelerating IT service delivery

Improved operational efficiency is certainly a compelling motivation for deploying a dynamic on-demand private cloud infrastructure. In fact, the automated service delivery capabilities of VMware’s cloud automation software have improved VMware customer’s operational efficiency by an average of 80% or more by utilizing resources on more strategic initiatives.  However, if you were to ask our customers with a year or more of deployment experience what their biggest benefit was, the response would likely be improved service delivery times that enable greater productivity or allow the business to address new opportunities quicker than the competition. Business agility is much harder to quantify than opex or capex savings.  For this reason, it is not typically included in a lot of private cloud business justifications.  The good news is that opex and capex savings alone are typically more than enough to justify deploying a private cloud. Keep up with your accelerated business pace Getting compute resources into the hands of business enables companies to access newbusiness opportunities.  For companies who rely on IT systems to differentiate their business, vCloud Automation Center allows companies to dramatically shorten the delivery time of initial provisioning and ongoing changes from days to hours and minutes.

With VMware, we have reduced the time needed to deploy virtual machines, as well as the effort of individuals required to focus on manual steps to provision.  This is saving money by refocusing resources toward strategic activities rather than building servers.” –Altaf Rupani, vice president of global systems services at Dow Jones.
When developing a business case for deploying a flexible private cloud infrastructure, many companies overlook IT responsiveness to the business needs because it tends to be more subjective and much harder to quantify than operational or capital savings. It’s not that improved business agility cannot be quantified; it’s just that it tends to defy a standard formula, because it is usually business and even company specific. In addition, it’s always harder to justify lost opportunity costs of not being able to expand as quickly or take on new business. For these reasons, the business agility that results from reduction in service delivery times is not included in a lot of private cloud business justifications. The good news is that operational and capital savings alone are more than enough to justify deploying your private cloud infrastructure. Even if you cannot quantify the value of improved service delivery, you need to include its benefits in your Private Cloud ROI business justifications. Here are a few examples that can help you better understand and maybe even quantify the value of quicker IT service delivery.
Improve Business Productivity
When building your private cloud business justification, improvements in business

productivity is a key benefit. For example, one company with a stalled virtual desktop deployment project confided in me that 3-4 days to provision a new machine was not uncommon for them. Yet the real challenge they faced was that the request for new machines was so high they often sat in the queue for multiple weeks before they had any resources to start the process. Consequently, new employees were waiting an average of three days before they could get a new virtual desktop with the software required to perform their jobs. With the implementation of vCloud Automation Center, the time to get a new desktop into the hands of their users was reduced to just a few hours. In fact, every day of improved productivity represented $350 per person. And with tens of thousands of employees and a 10% annual turnover rate, this company saved almost $700,000 per year in improved productivity for every 1,000 new employees they provisioned. So even if you can’t quantify the improvement in productivity per user, you can be sure to include the numerous qualitative benefits for your company in your business justification.

Enable New Business Opportunities
Your ability to rapidly provide or reconfigure compute resources can directly translate to the bottom line success of your company. IT systems not only enable business, they can also be fundamental to the delivery of products or services.

In challenging economic times, the struggles of some companies represent opportunities for others, provided they have the compute capacity to address increased business. In the case of one of our customers, their private cloud infrastructure not only allowed them to provision systems faster, it also allowed them to rapidly repurpose compute resources to handle the increase computing demands of the additional business. While improved business agility was not part of their initial Private Cloud ROI justification, it was the primary reason for the company’s expansion of its private cloud initiative to other business units within the company.

Justifying an increase in business due to a more flexible infrastructure is a difficult thing to do, because the gains can be subjective. Examining how shortening provisioning times has allowed your company to expand in the business in the past can be very useful. If you don’t have a private cloud pilot to draw upon, look back at how virtualization may have enabled new business opportunities. Virtualization has allowed most companies to shorten their provisioning times from weeks to days. Private Cloud automation, governance and control further reduce provisioning times to hours and even minutes.

What impact can this have on your business? More importantly what is the risk of ignoring private cloud infrastructures and have more agile competitors take business from you?

Get started developing your Private Cloud ROI and build your business case to deploying your Cloud Service Provisioning solution. Also, check out what some of our customers are saying in the customer case studies on our web site. Learn more:

Need help deploying your private cloud infrastructure or developing your business justification? Contact us and our experts can help your team build the business case and the solution that will maximize your IT productivity.