#Amazon Web Services ( #AWS ) and other public cloud providers have permanently changed everything in the world of IT infrastructure. In the old days, IT organizations would work with their vendor of choice to buy and deploy new hardware in their own datacenters, paying a large up-front cost for the equipment. Today, the public cloud has removed the headache of buying and managing hardware, with a model that allows IT to easily spin up compute, storage and networking resources in the cloud almost instantaneously. To respond to this new IT consumption model, traditional enterprise hardware companies like Hewlett Packard Enterprise ( #HPE ), #Cisco Systems, #Dell #EMC, #Lenovo, #NetApp, and others are having to change the way they do business, to ensure on-premises datacenters remain a viable and cost-effective option.
enterprise, who can transition away from capital-intensive expense models with high-up front costs, to a more linear operating expense-based budgeting model.
Hewlett Packard Enterprise is responding directly to the public cloud competitive threat. One of the more interesting announcements that many people missed at HPE Discover this week was the 3PAR Flash Now initiative, a new flash storage consumption approach for enterprise IT. Announcements like these can easily be overlooked, as they are less exciting than new technology demonstrations, but I would consider it one of the most relevant in terms of setting HPE up to compete successfully in the new enterprise storage market landscape.
As the cost of flash media declines and the capacity of flash increases, all-flash storage arrays are quickly gaining traction with mainstream enterprise IT. HPE’s 3PAR Flash Now initiative offers on-premises, all-flash storage starting at $0.03/GB usable capacity per month to help accelerate the transition to flash. While it is difficult to make a direct comparison to Amazon’s flash storage pricing model, it is likely that HPE’s pricing scheme could result in significantly lower costs when compared to the public cloud.
3PAR Flash is now offered with operating expense based financing (pay-as-you-grow) or services based agreements (pay-as-you-go), in addition to the traditional capital expense-based financing model. For both pay-as-you-go and pay-as-you-grow, HPE provides transparency regarding the amount of storage that is being consumed, which is then billed on a monthly usage rate. In addition, the new initiative provides an option for HPE to buy back legacy storage hardware which could be used as a cash infusion to help fund a new project. Hosting your storage in the private cloud can also provide advantages over the public cloud in terms of control, performance, security and more consistent service level agreements.
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