Skip Links

HP brings cloud economics to networking with a pay-per-use model

IT Best Practices Alert By Linda Musthaler, Network World
December 14, 2012 10:26 AM ET
Linda Musthaler
Sign up for this newsletter now!

The CIO-level business angle on the latest tech

Network World - HP just announced the HP FlexNetwork Utility Advantage Program, a pay-per-use managed network offering that represents a completely new model for modernizing your network infrastructure. Analyst firms such as Gartner and Forrester say this type of pay-as-you-go business model for enterprise networking is the next evolutionary step toward the cloud.

Many enterprises are facing a network refresh in order to support modern business requirements. For example, it's hard to support virtual machine mobility, unified communications, extensive multimedia capabilities, and a growing array of mobile devices on a legacy network that was architected many years ago for client/server style computing.

EVERYTHING AS A SERVICE: The cloud services explosion

But buying new enterprise network gear is expensive. Many companies don't have the capital in their budgets or don't want to tie up their capital long-term to modernize their network. HP's new program makes it possible to get new network infrastructure and pay for it on a per-use basis from an operating budget rather than a capital budget. In essence, HP is applying cloud economics to on-premise networking.

Here's a high-level overview of how the HP FlexNetwork Utility Advantage Program works:

An enterprise starts by partnering with its preferred communications service provider (CSP) -- typically the company that provides telco and Internet service to the enterprise. The enterprise outlines its specific business computing requirements and number of users, and the CSP determines the optimal network configuration based on HP Networking solutions. The CSP develops a proposal and a service level agreement for the network infrastructure.

Once the enterprise accepts the proposal, the CSP deploys and provisions the network, migrating existing applications and users to the new configuration. The equipment is installed on the customer's premises but -- here's the kicker -- the enterprise doesn't buy the equipment. Instead, HP retains ownership and assigns "per port" licenses to the CSP, which in turn assigns them to the enterprise customer. The CSP only activates the ports the customer needs. As business requirements change, the customer can dynamically provision ports, paying only for what it uses. The CSP provides remote management of the network using HP's FlexManagement software, further reducing the enterprise's need for on-site support.

Each network is built to the specifications provided by each customer, utilizing hardware and software from the HP FlexNetwork Architecture. The configurations use advanced innovations for wired and wireless LAN infrastructure to ensure a flexible networking foundation for years to come. This includes HP's recently announced commercial OpenFlow software, a key technology in software-defined networks.

In addition to getting an advanced network that can support modern business applications, the enterprise eliminates the sizeable expense of new LAN equipment as well as the increasing costs of network management and support. This better aligns the cost of the network to the needs of the business. Interestingly, these are similar to the reasons companies are now choosing software as a service instead of licensing and installing their own software.

Linda Musthaler is a principal analyst with Essential Solutions Corporation.

Our Commenting Policies
Latest News
rssRss Feed
View more Latest News