IBM Cloud for VMware Solutions provides a modern, hybrid cloud solution for organizations seeking improvements in performance and reliability of VMware environments. With this solution set, organizations also experience increases in developer productivity, reduced data center costs, improved operational efficiencies, and simplified security and compliance efforts, even in the most heavily regulated industries, offering a significant return on their modernization investment.
IBM Cloud for VMware Solutions enables organizations to transition workloads into a hybrid cloud environment, providing increased performance and scalability on modern hardware with less effort and cost compared to legacy solutions. Flexible, consumption-based pricing enables organizations to easily scale up and down as business needs evolve. IBM’s global presence and expertise give decisionmakers assurance that complex workload migrations will be successful and that the organization will achieve the performance and reliability enhancements made possible by the hybrid cloud. Embedded compliance and security features also alleviate the burden of managing these critical requirements.
IBM commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying IBM Cloud for VMware Solutions. 1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of IBM Cloud for VMware Solutions on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed decision-makers with experience using IBM Cloud for VMware Solutions. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization.
Prior to using IBM Cloud for VMware Solutions, interviewees told Forrester that they sought to modernize with a hybrid cloud solution but struggled to find a provider that could address the breadth of diverse business and regulatory requirements. Some interviewees noted how their organizations faced significant capex and other expenses maintaining onpremises data centers. Other interviewees who had worked with different cloud providers were unsatisfied with the level of service and responsiveness. Prior attempts at addressing these challenges yielded limited success.
After the investment in IBM Cloud for VMware Solutions, the interviewees migrated existing workloads into the cloud and discovered that they were able to add new workloads with a fraction of the effort needed to manage the legacy solution.
Quantified benefits. Risk-adjusted present value (PV) quantified benefits include:
- Increased operational efficiencies totaling $1.2 million. IBM Cloud for VMware Solutions requires less effort to manage workloads and frees up resources from managing on-premises hardware supporting legacy solutions, so employees can focus on new initiatives and other value-added tasks.
- Increased compliance and security efficiencies totaling $654,000. Compliance and security features in IBM Cloud enable organizations to reduce internal efforts in these areas, providing an opportunity to work on other projects and productive assignments.
- Reduced data center cost by $731,000. Moving to the cloud gives organizations the ability to reduce capex and other expenses associated with maintaining an on-prem data center.
- Reduced downtime worth $217,000. The reliability and performance gains organizations observe after deploying IBM Cloud for VMware Solutions reduces downtime and disruptions compared to the prior environment.
- Increased developer productivity valued at $1.5 million. Simplified administrative, compliance, and security tasks, as well as a shift to containers through Red Hat OpenShift, enabled developers to increase productivity.
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The Total Economic Impact™ Of IBM Cloud For VMware Solutions