As an IT leader, your organization was once mostly regarded as providers of technology. But now you and your team are being called upon to not only drive efficiencies and performance improvements, but also transform business functions enterprise-wide. All this while you also face demands from the business to prove the ROI of IT investments.
Before it can transform the business, is your IT organization nimble enough to transform itself? Can your organization go from being a technology provider to becoming an IT services broker? On-premises clouds are a vital element of this transformation. And you can ensure success by running your on-premises cloud like a business.
These 7 steps can empower your IT organization to take advantage of the infrastructure and virtualization advances an on-premises cloud offers. This in turn, reinvents the IT value proposition.
1. Baseline Your Current Cost and Quality of Service
Are you fully utilizing your existing infrastructure? Are you over-investing or under-investing in areas? You will first need to determine your existing IT costs and consumption metrics by establishing a baseline. This is your starting point against which you will measure the ROI of your on-premises cloud.
2. Define On-Premises Cloud Services with Pricing and SLAs
When a product or service is free, the demand for it is potentially infinite. An infinite variable in your equation, however, thwarts accurate ROI calculations and makes for less than ideal metrics. An on-premises cloud lets you leverage existing investments while enabling end-users to self-provision. This allows you price your new on-premises cloud services, helps end-users understand the value of IT services, and eliminates that troublesome infinite variable.
3. Design Standardized Processes for Orchestrating Self-Service IT
Once you have pricing and service level agreements for your IT services, you can automate the provisioning and fulfillment of IT requests from the business. Services can now be customized based on customer requests, which produce measurable SLAs.
4. Enable Consumption-Based Billing for Your On-Premises Cloud
Consumption-based billing allows you to speak a language your customers can understand in a way that is transparent to them. It also provides them with insight into and more accurate control over cost, quality and value. This builds trust between IT and the business.
5. Balance Business Demand with Capacity
You have earned their trust, but can you maintain it? This requires responsiveness when it comes to supply and demand. The on-premises cloud helps you accurately monitor IT resource consumption will help you track, predict and adjust to fluctuations in demand so you can optimize utilization and reduce costs.
6. Scale Your On-Premises Cloud with Support for Hybrid Clouds
Can you “cloud-burst” if demand spikes? Being agile means you can respond even when demand exceeds capacity. An on-premises cloud lets you efficiently and economically scale up or down rapidly through hybrid clouds, and maintain business continuity.
7. Map Out Ongoing Business Performance
Aim for quick wins when you have a solid understanding of your on-premises cloud’s cost structure to begin realizing ROI. This will allow you to pursue greater process improvements and efficiencies in the future.
Explore all 7 steps in greater detail in our whitepaper: 7 Practical Steps to Help You Run Your On-Premises Cloud Like a Business. Do you agree with these steps? What are your own? Share in the comments below.