Diminution of the Enterprise Data Center

Where the Public Cloud is extremely accepting of what IDC calls the 3rd Platform of application delivery (Digital / Web Applications), the 2nd Platform (Client Server) and 1st Platform (Centralized Mainframe/Minicomputer) do not always fair well in that same operating space.

As the fixed cost of the Enterprise Data Center is liquidated across an ever shrinking volume of 2nd and 1st Platform applications, CIOs need to look at the means to revitalize this application area or at the very least consider options for lower the cost of delivery.

In this space, transformation of the application and reduction of the associated technical debt of the application can be considered.  Where this is not possible, or unpalatable to the business for financial or strategic reasons, the locality of execution is the next logical place to look for better cost of delivery.

Figure 1.  Data Center CapEx vs OpEx

Workloads not able to move to Public Cloud may be moved to a co-location provider for optimal cost of delivery.  Consider also that the liquidated cost of the Enterprise Data Center per workload-month is expected to grow as more workloads move to the Public Cloud.

Financially, Co-Location results in a flat cost per unit of delivery, similar to Utility.  The monthly cost can be associated directly with the cost of doing business, even down to the individual applications being hosted.  The business can start to eliminate the CapEx cost of the Enterprise Data Center as well as future upgrades required for the facility.  Not an insignificant burden to the business.

The means to do this is well within reach of modern Network providers.  Telecommunications vendors are offering SD-WAN, WAN Switching, L2 Tunneling and other mechanisms for creating the next generation of connections to service the move to the OpEx Data Center.

With an average savings over Enterprise Data Center in the neighborhood of 30% per workload-month, the effect to the business by flattening the gap becomes significant.

Why?  http://www.abusedbits.com/2016/11/why-public-cloud-wins-workload-love.html 


Part 1:  There is a shift afoot, that is changing the business.
     http://www.abusedbits.com/2016/11/public-cloud-echo-in-data-center.html

Part 2: Moving time for the Enterprise Data Center?
     http://www.abusedbits.com/2016/11/diminution-of-enterprise-data-center.html

Part 3: The Enterprise Data Center is getting smaller.  Time to add that to the roadmap.
     http://www.abusedbits.com/2016/11/smallering-of-enterprise-data-center.html