Moving from services delivery to value creation

Simplivity’s $650m (?521m) acquisition by HPE makes the case for Enterprise Cloud Services.

  • 7 years ago Posted in
HyperGrid, the pioneer in creating and delivering the world’s first consumption-based on-premise cloud service for the enterprise, has said that enterprise IT will evolve from services delivery to value creation following the news that Simplivity has been acquired by HPE for $650m (?521m).

According to HPE’s press release, the purchase of Simplivity “advances HPE’s strategy in the fast-growing, high-margin HCI market.” While spending on HCI is growing fast, HCI will increasingly be viewed as a use case (specifically for VMs as a service) rather than a market. To evolve quickly from services delivery to value creation, businesses need to simultaneously deliver a broad set of services for legacy applications, enable application modernisation where possible, and provide modern application management for developers without disruption or overhead and do all this in a way that’s agile, flexible and on-demand with security, control and governance, this is according to Manoj Nair, Chief Product Officer at HyperGrid

He explains: “This shift will be driven by customers demanding integration of additional, higher layers of the stack, and innovative vendors responding to that demand with offers that support HCI as a use case, but deliver public cloud services in their data centres that include infrastructure, platform, and application management services. It is important for vendors to help CIOs and IT practitioners leapfrog from simply delivering services to creating business value by enabling business innovation while maintaining security, control and governance over delivery of IT services.

Alongside the growth of spending on HCI, there was also significant growth in public cloud adoption as the IT industry spent more than $22B (?18B) in 2016 as customers embraced the public cloud’s agility and consumption economics.

Nair continued: “Like HCI, we see public cloud as a partial solution to customer challenges; there are significant problems due to shadow IT owing to lack of control and governance, risk of cloud lock-in and poor support beyond VM-based computing. Enterprises are looking for an integrated and expanded IT solution that goes beyond HCI and public cloud options. This broader dynamic in IT is driving this vision of Enterprise Cloud Services, which deliver a public cloud-like services in the customer data centre.


“IT teams deploying Enterprise Cloud Services can better support overall business innovation and success through fast and flexible deployment of new and existing applications on the most efficient delivery platforms. The shift away from do-it-yourself approach to service delivery and higher-value added activities minimises the need for IT to perpetually focus on building, integrating, optimising, maintaining and refreshing many point solutions from multiple vendors that make up their services stack.”

HyperCloud is an Enterprise Cloud Services offering that provides the only consumption-based, cloud service for the enterprise on-premises, with integrated governance and control for DevOps management and orchestration for any application on bare-metal, VMs and containers, and on any cloud.
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