Enterprises Transform to OpEx models to Promote Cost Savings

By CIOReview | Friday, December 11, 2015

FREMONT, CA: The ever changing world of technology today has compelled enterprises to shift from hardware defined Data Center infrastructure to software defined infrastructure for their storage requirements due to the high costs of hardware defined infrastructures, reports Frank Berry for NETWORK Computing.

The hardware defined Data Center requires integration between applications and hardware. It is time consuming to implement and bind the organizations to a specific hardware that limits their flexibility and agility. Because of its high costs, organizations are turning to software defined infrastructures that are affordable and reliable solutions for their storage needs.

Software defined storage architecture is a virtualized infrastructure delivered as a service and controlled by a software. Network virtualization provides an agile network infrastructure to the software defined storage, which replicates all the necessary information required by an application. It allows organizations to transform business agility and IT infrastructure in areas of security. This transformation is easy to achieve in a software defined architecture than a hardware defined infrastructure.

IT organizations are migrating to on premise or off premise managed private or public clouds transforming their spending from CapEx to OpEx model. CapEx is a capital expenditure model where a business expense is incurred to acquire fixed physical assets while OpEx is an operating expenditure model consisting of operational costs and ongoing expenses of an organization. Owing to the migration from a hardware defined storage to software defined storage infrastructure, enterprises no longer need to spend on hardware platforms thus transforming them from CapEx to OpEx model.

To support this migration, Amazon’s third quarter earnings results reveal the increasing use of IT infrastructures and their spending on OpEx. It indicates the growing acceptance of Data Center infrastructure and storage moving to the cloud.