Renee Lawrence

Data Center Economics: Drive Transformation With TCO Gains

Blog Post created by Renee Lawrence Employee on Apr 4, 2016

In today’s digital economy, companies have to keep up the rapid speed and global reach of business, quickly changing customer requirements and new ways of doing business in order to maintain a competitive edge.  The new marketplace creates the trend toward cloud, IoT and big data and in order to keep pace it’s critical that IT managers consider a platform that will help them simplify daily operations to meet the current demands of the business while allowing them to think strategically about the future. Hitachi Unified Compute Platform (UCP) provides a strong, cost effective foundation for digital transformation with the flexibility to support business critical applications and the agility to meet tomorrow’s business challenges.


HDS recently commissioned Edison Group to conduct a research study on the economics of converged infrastructure deployment.  They interviewed an HDS customer, a large service provider that has migrated a self provisioned or “do it yourself” environment to a UCP converged infrastructure environment. With additional data from analysis of the EMC converged platform (VCE), the Edison group produced an economic study and a per VM 5 year cost analysis of TCO and TCA associated with moving to a converged infrastructure model.  The results of this study show a pretty incredible CAPEX and OPEX benefit in deploying converged infrastructure and even better economic results when deploying UCP.  UCP outperformed DIY environments in cost savings, reducing CAPEX by 37% and OPEX by 38%.


There are several reasons why a move to converged systems can save time and money.  Converged systems are pre-validated and pre-engineered so they arrive on the dock as single units of compute, storage and networking with preloaded applications and are ready to be deployed and in production in days vs. weeks or months.  They eliminate the need for lengthy evaluation, analysis, certification and design during infrastructure planning.  And, as a single vendor solution, they are easier to support and maintain than separate components from multiple vendors.  When compared to other solutions, UCP also provides additional cost savings and efficiency through unique Hitachi capabilities.  Here’s a quick snapshot of the stats highlighted in the Edison Group’s report:

5 year analysis of UCP CAPEX savings

  • 37% CAPEX reduction, $1.8 Million in savings vs. DIY infrastructure
  • 34% CAPEX reduction, $1.6 Million in savings vs. VCE

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5 year analysis of UCP OPEX savings

  • 38% OPEX reduction, $11.1 Million in savings vs. DIY infrastructure
  • 10% OPEX reduction, $751,000 in savings vs. VCE

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Several factors account for the CAPEX and OPEX gains that can be achieved with UCP deployment.  A few highlights include the automation and orchestration capabilities of UCP Director infrastructure management software, some unique capabilities of HDS server technology, and the advanced features of the latest generation of Hitachi storage.


UCP Director infrastructure management simplifies daily data center operations by automating routine data center tasks from firmware upgrades to physical or virtual resource provisioning.  This significantly reduces the amount of time necessary to maintain and deploy resources, freeing up staff for other, more strategic business needs.  Another powerful feature of UCP Director is that it can orchestrate end to end infrastructure and supports bare metal, virtualized or container-based environments with visibility to the component level. The native integration with hypervisor management is an added plus – UCP Director can be accessed directly from existing management tools.  Taking it a step further, UCP can also be configured to deliver true IT as a service with Hitachi Cloud Automation Manager, which gives end users self service capabilities to provision resources as needed.


Hitachi also delivers game changing technologies in the compute and storage components of UCP that provide flexible utilization options and additional cost and time savings. Hitachi blade servers are the only x86 servers that offer logical partitioning (LPAR), which allows you to allocate processing power on demand and improve utilization rates.  UCP also supports Symmetric Multi-Processing (SMP) to connect multiple physical servers and blades into a single logical server instance.  These technologies enable the flexibility to compose either a scale-up solution or a scale-out environment that delivers a range of bare metal performance options for demanding workloads like SAP HANA and a virtual scale-out cloud for the SAP application suite, all using the same server pool.


Hitachi storage offers additional benefits with Storage Virtualization OS (SVOS) including storage virtualization, thin provisioning and further automated storage management.  This, in combination with dynamic pooling and tiering and the ability to add flash storage to the system in the same hardware chassis offers a very resource efficient, highly automated, high performance solution compared to other converged infrastructure systems.


Another very interesting take on the cost benefits of UCP deployment is a breakdown of cost per VM.  To read more about those results, download the Edison Group economics whitepaper here.