What is HPE GreenLake and how does it work?
GreenLake and the consumption-based model
Another GreenLake feature that sets it apart from a leasing program is its consumption-based pricing model, which brings the program more in line with a cloud services structure. HPE installs the hardware in a customer’s environment of choice but offers it as a service rather than an outright sales purchase. Not only does this eliminate the initial capital outlay typical of a traditional sales transaction, but it also reduces IT overhead. Customers need only come up with the monthly subscription fee, along with a place to house the components.
GreenLake bases the fees on actual metered usage rather than fixed amounts. In this way, users pay only for what is used, not what might be used. HPE continuously monitors the installation based on a wide choice of metrics, such as consumption per server, per gigaMetered usage also provides an effective form of capacity management for organizations, as IT always knows how much capacity is being used and who is using it. If more capacity is needed, users can implement it immediately, because the GreenLake product comes with additional capacity to accommodate potential growth. However, HPE doesn’t charge customers for the extra capacity until they actually use it. The combination of metered usage and flexible capacity helps maximize agility while avoiding the costs associated with overprovisioning.
GreenLake’s consumption-based model enables enterprises to get state-of-the-art data center products without the costs and complexities that come with a traditional approach to deploying infrastructure. At the same time, IT maintains control over the systems and environment, while benefitting from HPE’s ongoing monitoring, maintenance and support. Scaling systems is also easier and faster, leading to greater agility. Not only do these features help simplify IT operations, but they free up IT personnel for other endeavors as well.
When taken together, these benefits can potentially reduce the costs associated with deploying and maintaining IT infrastructure. There are no capital expenditures, IT has fewer operations to carry out, customers pay for only the services they use and systems are easier to scale — without having to overprovision them. As good as all this sounds, however, you can’t assume that a consumption-based program will result in a lower TCO. Even under the best circumstances, those subscription fees add up, and paying them long-term can get quite pricey.
With GreenLake, unlike traditional infrastructure, users don’t have anything to show for their investment when you no longer need the equipment. HPE still owns all the hardware. Organizations can’t sell the servers or use them for trade-in. In addition, they’re still reliant on HPE to deliver the services it promises. Not only does this mean abiding That’s not to say organizations should avoid the consumption-based model. It does mean they need to carefully analyze a program like GreenLake to get a true TCO and ensure it will accommodate their requirements over the long term.