spend opex dollars and get your own private cloud

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Get your own HP private cloud and spend OPEX dollars instead of CAPEX to acquire it. Flexible Capacity Service is designed for customers who are seeking the benefits of a private cloud pay-for-usage model, and who need the infrastructure to be located at their own site. This utility service provides access to HP servers, storage, and networking that is deployed ahead of demand. The Customer pays only when capacity is used, subject to a minimum commitment. Use cases discussed include capacity for peak periods, rapid expansion, or building cloud systems. This new offer provides HP infrastructure that never runs out, is paid per use and is very easy to procure. Come to this session to learn more.

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Page 1: Spend OPEX dollars and get your own Private Cloud
Page 2: Spend OPEX dollars and get your own Private Cloud

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Spend OPEX dollars and get your own private cloud Ken Rief, Americas Portfolio Manager

June13, 2013

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 3

My background

Title

Americas Portfolio Manager –Flexible Capacity Service

IT industry experience • Business Development for Multi-Vendor Services

• Services Sales Consultant

• Hardware Sales

Years at HP

15

Current responsibilities • Portfolio Management

• Subject Matter Expert for Private Cloud offering

• Sales training

Name: Ken Rief

E-mail: [email protected]

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Agenda

Customer challenges

Flexible Capacity Service Overview

Why is Flexible Capacity Service necessary?

How it works

Customer Example

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 5

What we are hearing...

Customer challenges

• Large upfront IT investment

• Capital budget constraints

• Flexibility to meet growth and surges in demand

• Ability to control and monitor infrastructure utilization

• Provisioning, managing, and scaling infrastructure

• Aligning costs with infrastructure usage

• Increase IT sustainability

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 6

Why is Flexible Capacity Service necessary?

Predicting capacity requirements

Too much capacity with low utilization

Missed opportunities and dissatisfied customers

Limited IT budgets

Large upfront IT investment is difficult

Align infrastructure cost with usage

Long purchase cycles

Purchase orders take weeks to months

Customer challenges

Actual Capacity Usage

Flexible Capacity Deployed Ahead of Demand

Capital Expenditure or Lease IT Infrastructure deployed

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Flexible Capacity Service Overview

Infrastructure capacity that never runs out and ensures customer security • Customizable to meet unique requirements for servers, storage, networking and software

• The right resources as pre-emptive services, ensuring maximum uptime and best time to value

• The right time on your site, ensuring security & compliance by keeping all infrastructure in your data center

Paid for as you use it • Eliminate upfront capital expenses

• Monthly service invoice on metered usage

Easy to procure • Smooth acquisition process

• Equipment ready when you need it on your site

• Partnership to share utilization risk

Capacity ahead of demand – at customer site

Flexible Capacity matches your variable demand

Business Application Fo

reca

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d c

ap

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ty

Increase capacity

Loca

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er

Decrease capacity

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 8

Pay only for the servers, storage and networking capacity and services you actually use each month

Monthly Payment Includes1

• Servers

• Storage

• Networking

• Software

• Services

Variable usage = variable payment

• Usage = Billing

• Usage = Billing

• Usage = Billing

Network Per Port

Servers Per blade

Storage Per GB

1Minimums apply below certain usage levels (80%)

Software Per License,

GB or VM.

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 9

Services are included in the Monthly Cost Install and Deploy • All equipment is delivered turn key with a basic configuration as mutually defined.

• Spare equipment is delivered in the same way but powered down. Ready to start when you need it.

HW and SW support • DL Servers: 7x24 with 4 hour hardware response time.

• All HP delivered software: 7x24 with 2 hour response time

Proactive services targeted to the availability of the infrastructure through: • 4x per year on-site meeting for operational review and forecasting

• 2x per year patch analysis and management

• 1x per year system health check

Utility Management services • Dedicated back office in combination with the Account Support Manger (who is also part of the Proactive services)

• Monthly reporting of the usage figures and related costs

• Initializing assessments and migration services.

• Architectural/Consultancy support

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Projected investments for traditional acquisition plan vs. proposed Flexible Capacity Service solution

Cost comparison – 3Par Storage – 9.01% Savings

CAPEX Expenditures Year 1 Year 2 Year 3 Year 4 4 Year Total

Total CAPEX expenditure $1,529,702 $122,716 $179,121 $759,834 $2,591,375

FCS Solution

Year 1 Year 2 Year 3 Year 4 4 Year Total

Total FCS costs $355,385 $504,605 $652,752 $845,203 $2,357,947

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 11

* Includes all hardware, software and services

HP FCS Annual Cost Comparison*

Millions of Dollars

0

1

2

3

4

5

6

7

Year 1 Year 2 Year 3 Year 4 Total Cost

CAPEX

FCS

Cost comparison: 3Par Storage – 9.01% Savings

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1. Analyze Requirements, Business Drivers; initial sale & ongoing

2. Define Plan Sign Contract and *SOWs

3. Servers, Storage and Networking devices delivered to Customer

4. HP installs & configures systems and meter software

5. Metering and data collection enabled during configuration

6. System sends usage report to HP portal

7. Monthly Invoice: Usage data used to calculate monthly bill.

HP and Customer can view usage data

on the web portal

Interlinked, ongoing management

• Add-on technology due to business need

• Buffer consumption and addition

• Technology refresh

*SOW = Statement of Work

Continuous loop process

Flexible Capacity Service: How it works

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 13

Account Support Manager (ASM) Accountable for FCS proactive services relating to Capacity

Responsible for the installation and ongoing

mgmt (HP & Customer) of “meter” technology

Submits monthly usage data to HP

ECO

Conducts quarterly Customer Reviews Incorporates FCS activities, metering, and change processes into the overall Datacenter Care Account Support Plan

Monitor capacity used/buffer

capacity – Daily and trigger

change request if needed

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 14

Non-coterminous contract

Flexible Capacity Service – Basic Model

• From day 1 HP delivers and charges the Basic capacity

• Basic model includes 10% buffer capacity that is only charged when used

• HP charges used buffer capacity at a monthly price per server/GB/port/ and makes software available on a per license or VM used, until end of contract

• HP monitors consumption of buffer capacity on a pay-as-you-grow basis, replenishes it ahead of demand after consulting with customer

Pay as you grow model

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Buffer replenished ahead of demand

Flexible Capacity Service – Basic Model Example

Pay as you Grow model

Committed Capacity

120 blades

Utilization (6 blades)

Utilization (6 blades)

Utilization (6 blades)

Utilization (6 blades)

Time in months

Initial Buffer

Actual Usage

Server, Storage, SAN

12 blades

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Flexible Capacity Service – Premium Model Possibility of rolling contract

• Set committed capacity (e.g. ,70% of current capacity used)

• HP delivers solution that is at least equal to current capacity

• HP implements a 10% buffer capacity, charged when customer uses it

• HP charges actual used capacity at a monthly price per server/GB/port/license/VM

• Grow and shrink in usage is allowed in FCS Premium, but never less than committed capacity.

Pay as you go model

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© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 17

Buffer replenished ahead of demand

Flexible Capacity Service – Premium Model

Pay as you Go model

Committed Capacity

120 blades

Utilization (6 blades)

Utilization (6 blades)

Utilization (6 blades)

Utilization (6 blades)

Time in months

Initial Buffer

Server, Storage, SAN

Actual Usage

Capacity returned, charges adjust

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 18

Projected investments for traditional acquisition plan vs. proposed Flexible Capacity Service solution

Cost comparison: Blade Servers - 25.24% savings

CAPEX Expenditures Year 1 Year 2 Year 3 Year 4 4 Year Total

Total CAPEX expenditure $ 2,834,084 $ 986,621 $ 1,132,437 $ 1,633,073 $ 6,586,217

FCS Solution

Year 1 Year 2 Year 3 Year 4 4 Year Total

Total FCS costs $ 752,350 $ 1,001,240 $ 1,334,629 $ 1,829,354 $ 4,917,575

* Includes all hardware, software and services

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 19

HP FCS Annual Cost Comparison*

Millions of Dollars

0

1

2

3

4

5

6

7

Year 1 Year 2 Year 3 Year 4 Total Costs

CAPEX

FCS

Cost comparison: Blade Servers - 25.24% savings

* Includes all hardware, software and services

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 20

HP offers the required hardware and services capabilities as a utility:

FCS at a Glance

HP optimizes investments

1. HP meters and invoices customer on usage.

2. Internal charge-back of the usage of capacity is simplified.

3. Transparent & predictability based on actual use.

4. “Off balance-sheet financing”; Depending on accounting treatment, FCS may qualify for OPEX, which helps you improving your financial position.

HP shares risk costs

1. No expensive pre investment in HW & SW

2. A hot standby buffer ensures immediate availability of sufficient capacity at all times.

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 21

Financial Benefits of FCS for customers 1. Cash

– Preserves Cash for higher yielding investments 2. Cash Flow

– Cash in = Cash out, solves cash flow challenges – Service Providers can grow faster.

3. Impact on Financial Statements – Positive impact on financial ratios (current ratio & debt-to-equity)

4. Impact on Income Statement – Positive impact on profitability ratios (return on assets)

5. Predictability – Better visibility and predictability of IT costs.

6. Budgetary considerations – Payments are typically made from the operating budget. Allows companies to acquire needed equipment

when capital budget is exhausted or frozen. 7. Flexibility

– IT costs are aligned to infrastructure usage (both growth and shrink allowed). 8. Efficient

– Pay-per-Use means you don’t finance your over provisioned capacity in the Datacenter 9. Shared Financial Risk

– In FCS both customer and HP share the financial risk of unused capacity

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 22

Capacity ahead of demand” with required infrastructure capacity provided on your site as a service

Flexible Capacity Service in a nutshell

• HP is responsible for supplying new HW & providing a buffer with a number of Blades / Storage capacity, not billed for unless used

• Depending on the category of server/cloud, storage or network security software you choose HP will include the software licenses, on a license, per GB, or per VM price.

• HP meters and invoices based on actual blade server and storage used each month1

• HP assumes significant share of business risk of storage and blade infrastructure

• No major capital investment in hardware required

• Better visibility , predictability and transparency of IT costs

• HP continuously optimizes existing capacity, ensuring sufficient standby capacity

1Minimums apply below certain usage levels (i.e., 80%)

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 23

Flexible Capacity Service – Coming Soon

• FCS to include HP Software Solutions: • Lead Products: • HP Cloud Service Automation (Cloud / Servers) • HP Data Protector (Storage) • HP Security – ArcSight: (Networking)

• Also Available: • HP Business Service Automation • HP Operations Orchestration • HP Server Automation • HP Network Automation • HP SiteScope • HP uCMDB • HP Database and Middleware Automation • Cloud Cruiser – Cloud Cost Management • HP Security – Fortify: Software Security • HP Security – TippingPoint: Network Security

To Be Announced at Discover: FCS Venus Release – July 19, 2013

• FCS for Hyperscale • Support for SL and SE Blades • Support for Moonshot • Support for Hyperscale DC Services

• Back Office Enhancements • Enhanced User Portal Experience • Customer Ad-Hoc Reporting • Faster Invoicing

• HP Networking Expansion • Per Port Billing • Per User Billing

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Customer example: Service Provider

Challenge Service Provider won a large customer deal themselves and needed to provide their customer with software, infrastructure, market-specific solutions and a wide range of related services, quickly and cost-effectively

Solution HP transformed customers traditional IT infrastructure to a Flexible Capacity Service with our TS usage based solution model

Components • HP CloudSystem Matrix

• HP 3Par Storage, HP EVA Storage, HP X9720 Storage

• HP SAN Switches, HP MPX200 Routers

• TS Services: Cloud Start Consulting Service, Lifecycle, Proactive & Reactive Services

What HP provides • Desired financial flexibility

• Solved cash-flow challenges

• Moved CapEx to OpEx

Allows capacity usage to grow and shrink*

HP was the best vendor to deliver the solution both from a product and service perspective.

HP Datacenter Care Flexible Capacity Service

*(within limitations)

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 25

Projected investments for traditional acquisition plan vs. proposed Flexible Capacity Service solution

Cost comparison: Blades, Storage, Network Switches – 4.3% Savings

CAPEX Expenditures Year 1 Year 2 Year 3 3 Year Total

Total CAPEX expenditure $1,453,771 $107,859 $349,706 $1,911,337

FCS Solution

Year 1 Year 2 Year 3 Year 4

Total FCS costs $481,760 $616,600 $728,892 $1,827,252

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 26

HP FCS Annual Cost Comparison*

Millions of Dollars

0

0.5

1

1.5

2

2.5

Year 1 Year 2 Year 3 Total Cost

CAPEX FCS

Cost comparison: Blades, Storage, Network Switches – 4.3% Savings

* Includes all hardware, software and services

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 27

Flexible Capacity Service Framework Delivering proven business value

Datacenter Care Services

• Implementation/Deinstall and Program Management

• Capacity Management and Planning

• All system health, care and feeding and reactive maintenance services.

• Other things can be added Ex. Migration Planning

Services

Servers, Storage and Networking (and HP software)

Hardware

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 28

For more information

Attend these sessions

BB2678

Datacenter Care: Boost availability, performance and

efficiency while reducing IT operating costs

BB1650

Spend OPEX dollars and Get your own Private

Cloud

DT3268

Exceeding SLAs for critical Cloud based IT services

TB3210

Estimating and improving ROI in your data center

BB3546

Addressing critical support challenges in a

converged cloud environment

BB2673

Datacenter Trends & Direction

Visit these demos

• Moonshot Services

• Datacenter Care PSP

• Supporting the Cloud

After the event

• Contact your sales rep

• Visit the website/Facebook/Twitter at: www.hp.com/services/datacentercare

• Download the whitepaper Conquering the Challenges of DC Complexity

http://h20195.www2.hp.com/V2/GetDocument.aspx?docname=4AA4-0087ENW&cc=us&lc=en

Your feedback is important to us. Please take a few minutes to complete the session survey.

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 29

Learn more about this topic

Use HP Autonomy’s Augmented Reality (AR) to access more content

1. Launch the HP Autonomy AR app*

2. View this slide through the app

3. Unlock additional information!

*Available on the App Store and Google Play

Page 30: Spend OPEX dollars and get your own Private Cloud

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Thank you