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The Single Biggest Benefit Of Enterprise Cloud (And It’s Not What You Think)

Organizations across the globe are increasingly looking to public cloud – not to reduce infrastructure costs (analyses show cloud is expensive for the predictable workloads that comprise the bulk of applications run in most organizations), but to enhance the ability of the business to react more quickly and effectively to the increasingly dynamic marketplace. A recent study by IDC shows that while deploying Nutanix does enable significant infrastructure and other savings over traditional 3-tier infrastructure (Centralized Storage + Storage Network + Compute), the biggest opportunity was squarely in the bucket of improved business productivity.

Nutanix and the IDC Study

Nutanix commissioned a white paper from IDC entitled, “Nutanix Delivering Strong Value as a Cost-Effective, Efficient, Scalable Platform for Enterprise Applications” (August 2017) (you can download the report here) detailing the benefits of deploying enterprise applications on Enterprise Cloud. While Nutanix paid for the study, it was an independent analysis of 11 organizations which averaged 12,331 employees, 192 IT staff, and have deployed an average of 62 Nutanix, Dell XC or Lenovo HX nodes supporting 861 VMs.

Source: IDC White Paper, sponsored by Nutanix, Nutanix Delivering Strong Value as a Cost-Effective, Efficient, Scalable Platform for Enterprise Applications, August 2017

As you can see in the chart above, Nutanix solutions were shown to provide fantastic infrastructure savings along with increased staff and user productivity.

Business productivity savings, which is tied to agility, scalability and performance, accounted for 57% of the overall total benefits.

Cloud-Like Agility with Lower Cost and More Control

Watch any AWS webinar and you’ll see how often the company talks about the increased speed and agility that the public cloud brings. From AWS’s website (https://aws.amazon.com/what-is-cloud-computing/):

In a cloud computing environment, new IT resources are only ever a click away, which means you reduce the time it takes to make those resources available to your developers from weeks to just minutes. This results in a dramatic increase in agility for the organization, since the cost and time it takes to experiment and develop is significantly lower.

Nutanix Enterprise Cloud enables customers to marry the benefits of public cloud-like agility and productivity with the low cost and control of an on-premises environment. These benefits allow a company’s IT team to shift to projects that are value additive to the business instead of just relegating those teams to simply “keeping the lights on.”

In a Nutanix customer’s words:

“We currently have one engineer who supports our Nutanix environment, whereas we previously needed five people. We’re more than triple our output in terms of what we’re delivering for the business with technology and delivering more business capabilities.”

The IDC White Paper states that the business productivity and increased agility savings result from three areas: agility/scalability/performance, less downtime, and enhanced security.

Agility/scalability/performance: Nutanix customers reported to IDC that deployment and upgrades of compute and storage resources are much faster and require dramatically less IT staff time, while enabling markedly better performance than the legacy infrastructure. IT’s consequent ability to keep up with demand from their businesses resulted in higher revenues.

“Nutanix is easier to scale. If we need more storage or more equipment, we just add it. This is important because it means our business is not waiting for additional systems or capacity or whatever they need, and we don’t risk losing a customer.”

Less Downtime: Nutanix’s Enterprise Cloud reduced the frequency and duration of unplanned outages affecting applications and services well as improved disaster recovery and failover capabilities. The organizations in the study reduced the impact of unplanned outages on their employees by 94%, with each user losing only four minutes of productive time per year with Nutanix.

“We’ve had zero downtime since 2013 with Nutanix. We have what we call the one-button upgrade approach, so we’re able to implement a lot of the new software upgrades with every release Nutanix has and we don’t have to take the system down. We just do a one-click upgrade for the OS.”

Enhanced Security: Nutanix works to incorporate security across the development life cycle, from design and development to testing and hardening, and has developed its own Security Technical Implementation Guide (STIG), which is used along with automation and self-healing security models to help its customers maintain security.

“From an auditing perspective related to PCI compliance, we have to regularly patch and maintain our systems, and Nutanix helps us do this much more easily.”

IT Staff Productivity Gains

Source: IDC White Paper, sponsored by Nutanix, Nutanix Delivering Strong Value as a Cost-Effective, Efficient, Scalable Platform for Enterprise Applications, August 2017

An important contributor to agility and faster time-to-market are enhancements in IT staff productivity. IDC says that the average reduction in time spent managing an environment utilizing Nutanix was 61%.

“We’ve gone from needing eight people to two people to manage our Nutanix environment. Instead, we’re spending a lot more time designing automated solutions for our shop floor that were traditionally very manual, so it’s a significant benefit for the business by having IT working on the business.”

Calculating Your Savings from Deploying Nutanix

The IDC study shows that the average total annual benefits from deploying Nutanix come to $4.24 million. This savings results from four primary areas:

IT Infrastructure Cost Reductions and Avoidances: $189,400 from maintenance, power, facilities, licensing, and disaster recovery ($2,281 per 100 users).

IT Staff Productivity Benefits: $1.07M from reducing by, on average, 61% the IT staff time to deploy, manage, and support their legacy infrastructures ($12,884 per 100 users).

Risk mitigation: $540,900 from fewer unplanned outages and faster resolution ($6,516 per 100 users).

Business Productivity Benefits: $2.44M from enhanced agility, scalability and performance along with improved business results and higher user productivity ($29,395 per 100 users).

How much will you save? Read the report and get a customized version with your unique savings here.

Forward-Looking Statements Disclaimer

This blog includes forward-looking statements, including but not limited to statements concerning product performance, possible cost savings from utilizing our products, competitive position and potential market opportunities. These forward-looking statements are not historical facts, and instead are based on our current expectations, estimates, opinions and beliefs. The accuracy of such forward-looking statements depends upon future events, and involves risks, uncertainties and other factors beyond our control that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: failure to develop, or unexpected difficulties or delays in developing, new product features or technology on a timely or cost-effective basis; delays in or lack of customer or market acceptance of our new product features or technology; the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; a shift in industry or competitive dynamics or customer demand; and other risks detailed in our Form 10-Q for the fiscal quarter ended April 30, 2017, filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this presentation and, except as required by law, we assume no obligation to update forward-looking statements to reflect actual results or subsequent events or circumstances.

© 2017 Nutanix, Inc. All rights reserved. Nutanix, the Enterprise Cloud Platform, and the Nutanix logo are registered trademarks or trademarks of Nutanix, Inc. in the United States and other countries. All other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).