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Rethinkingthe
Rethinkingthecloud:unlockingvaluewithahybridconvergedcloudportfolio
Asenterprisesacceleratetheirdigital
transformations,anewfinancialrealityisemerging:cloudandVMwarecosts
arequietlysqueezingmarginsand
reshapingITstrategies.Cloudexpensesareexceedingbudgetsby10to15
percent,andVMwarecostshavesurgedby5to10xduetolicensingchanges.
Underutilizeddatacentercostsalso
continuetobeaburden.Together,theynowaccountfor10to25percentofITbudgets,withVMwarealonesupporting20to25percentofworkloads.The
result?Aprojected10percentincreaseinITcostsanda50to100basispointhittoprofitmargins—ashiftthatCFOsandCIOscannolongerignore.
Flexera
Thepubliccloudpromiseandthereality
Overthepastdecade,organizationshaveambitiouslymigratedapplicationsandinfrastructurefrom
on-premisetothepubliccloud,drawnbypromisesofgreaterflexibility,scalability,andcost-efficiency.However,morethan10yearsin,manyarefinding
thatthepubliccloudhasn’tdeliveredthevaluetheyexpected.Why?Weseefourreasons:
1.Costsarehigherthananticipated.Fifty-ninepercentofenterprisesreportspendingmoreonpubliccloudthantheyoriginallyprojected,witha10to12percentincreaseperyear.1
2.Flexibilityisconstrained.Long-termcontracts(threetofiveyears)underminetheon-demandvalueproposition.
3.Resiliencyisstillachallenge.Outages,denial-of-serviceattacks,andsecuritybreachescontinue
toimpactuptime.
4.Environmentsaresiloed.On-premiseandmultiplecloudenvironmentsaredrivingsiloedoperating
models,processes,andtoolsandtechnologies,
resultinginduplicateresources,non-standardizedpractices,fragmentation,andgovernance
challenges.
Theon-premiseenvironment:aVMWarechallenge
Whilethepubliccloudrushwason,theon-premiseenvironmentremainedstatusquo.Thencame
Broadcom’sacquisitionofVMWare,whichc
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