The easier you make it for your business to use IT, the more your company will rely upon, IT. We know that thanks to an economic theory called Jevons paradox.
The Jevons paradox states that as technology evolves and processes become enhanced to the point where a resource can be used more efficiently, the rate of consumption associated with that particular resource increases as well. That increase is due to a simultaneous increase in demand.
The paradox, not surprisingly, is named for William Stanley Jevons. He observed that the consumption of coal drastically increased in England following the introduction of the Watt steam engine, which burned coal more efficiently than previous technologies.
That paradox is relevant to the cloud computing conversation. In traditional 3-tier (centralized storage + storage networks + compute) data centers, the mishmash of SANs, NAS devices, switch fabrics, servers and management consoles lead to considerable inefficiencies in technology consumption. The result is complexity, poor scalability, and vulnerability to downtime, among other challenges.
Businesses, though, require increasingly faster IT responsiveness in order for their success. When they can’t get the agility they need from internal IT, they look to public cloud.
Public Cloud is No Panacea
While public cloud can be a fantastic fit for elastic-workloads, it is typically not the optimal solution for the majority of applications. For one thing, it tends to be quite expensive – particularly when adding in components such as load-balancing, backup, DR, bandwidth, monitoring, etc. Cost often increases further when performance proves inadequate for certain workloads. I was at a large company recently that was paying exorbitant public cloud fees because so many employees ordered VMs without any centralized way of managing them or of discontinuing usage when no longer required.
It can also be very migrate to public cloud. Wikibon estimates that the payback of converting to public cloud takes over four times as long as to recoup the costs of migrating to a private cloud. The first year is particularly painful with public cloud conversion having a large negative value to the organization.
It can additionally be expensive and time-consuming to get back out of the cloud. Facebook, required 20 engineers a year to migrate Instagram from AWS to its own datacenters following its acquisition Instagram. And public cloud often still lacks capabilities required for compliance and certain standards of security.
The Enterprise Cloud Alternative
Virtualization, in the early days, held out great promise for simplifying the data center and for bringing a new level of efficiency to IT operations. Instead, things became even more complex as organizations added SANs, NAS devices and switch fabrics in order to utilize enterprise virtualization capabilities such as vMotion/Live Migration and DRS.
Hypervisors were built to sustain these hodgepodge environments, adding still more silos of management consoles, analytics databases and disaster recovery tools. Enabling acceptable scalability and resiliency often required extensive design and implementation costs.
“One of the main value-adds Nutanix brings is simplifying the way people interact with, purchase and manage IT hardware.”
– Paul Pindell, Senior Solution Architect F5 Networks
Nutanix eliminates the inefficiencies of 3-tier infrastructure, allowing IT to benefit from the same accelerated time-to-market, simplicity and efficiency of public cloud while also enabling lower costs, more control and better long-term predictability. This simplification translates into business benefits.
The IT Manager at Protective Trust explained in an IDC study of 13 Nutanix customers, “Nutanix impacts the performance of our services to the end user, which means they are happier … That results in more sales for us. There are customers that we probably would not have gotten if it weren’t for Nutanix. The impact to revenue is probably [in the] millions — $1-2 million per year currently.”
In the same IDC study, an IT manager at an insurance company in Europe described how Nutanix solutions help make business more effective: “We’re now more proactive with Nutanix because I can predict more easily how I want to change my infrastructure …. This means that 80% of my time is proactive; before, it was like 40%. We’re doing projects and other work with this saved time and creating business value.”
An IT manager at Langs Building Supplies said, “With Nutanix, we are doing far more projects for our business units …. Instead of spending 65% of our time running things, we’re spending 65% working on the business …. So we’ve become an enabler rather than a hindrance.”
Converging Public and Private Clouds
Nutanix is taking hyperconvergence to a new level by starting to converge the private and public clouds–delivering hybrid capabilities to common data and control fabrics. Deploying an enterprise cloud enables organizations to reclaim a huge chunk of their IT budgets—falling in line with exactly what Mr. Jevon learned long ago.
What Your In-House IT Department Can Learn from Cloud-Computing. 01/08/2016. Steve Kaplan. bythebell.com.
7 Reasons Why Acropolis is the Next Generation Hypervisor. 12/01/2015. Steve Kaplan. Nutanix.com