Frost & Sullivan Lauds HP Flexible Capacity Service for Customer Value Leadership
HP's pay-per-use service recognizes the need for consumption-based pricing of infrastructure within data centers
MOUNTAIN VIEW, Calif., Sept. 9, 2015 /PRNewswire/ -- Based on its recent analysis of the data center management services market, Frost & Sullivan recognizes HP with the 2015 North American Frost & Sullivan Award for Customer Value Leadership with respect to HP's Flexible Capacity Service, a flexible pay-per-use service. As part of HP's Datacenter Care portfolio to address customers' needs for flexible IT sourcing models, HP Flexible Capacity offers enterprises a new way to procure and manage on-premises infrastructure with the flexibility and cost efficiencies of public cloud resources. HP clinched its market position by enabling "buffer" infrastructure to be placed in the on-premises data center, allowing for easy scalability, while the customer does not pay for that buffer until they use it. The unique offer answers the need for consumption-based pricing of infrastructure within the enterprise data center.
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"HP's mode of engagement brings a very personal experience to consuming IT, with pricing that mimics the self-service environment of public cloud," said Frost & Sullivan Industry Analyst Karyn Price. "HP Flexible Capacity provides the IT department considerable control over workloads, without having to overcommit or over-invest in upfront equipment purchases. In addition, as the infrastructure is included by HP as part of the service, IT may be able to shift infrastructure from a CAPEX model to an OPEX model depending on their accounting policies and practices."
In the data center market, it is rare to find a provider supporting solutions that enable public cloud–like consumption-based pricing for the end user while being an attractive offer for the channel, one that they can profit from and which helps to expand the relationship they have with customers.
"Many organizations are looking at how to transform to hybrid infrastructure, balancing which workloads will stay on premises and those that will run on the cloud, and optimizing the financial models between those," said Scott Weller, senior vice president and general manager, HP Technology Services Support. "HP Flexible Capacity is a true consumption based model that provides public cloud economics for on-premises infrastructure. We are honored that Frost & Sullivan recognizes the positive impact this flexible pay-per-use service has with our customers."
"In sharing the downside of unused capacity with enterprise customers, HP displays confidence in its ability to efficiently manage on-premises capacity and improve productivity in a way that is cost-effective to all involved," observed Price. "It also allows the IT provider to elevate customer conversations to include strategic business goals and outcomes, while delivering significant cost efficiencies derived from its consumption-based pricing model."
Each year, Frost & Sullivan presents this award to the company that has demonstrated excellence in implementing strategies that proactively create value for its customers with a focus on improving the return on the investment that customers make in its services or products. The award recognizes the company's inordinate focus on enhancing the value that its customers receive, beyond simply good customer service, leading to improved customer retention and, ultimately, customer base expansion.
Frost & Sullivan's Best Practices Awards recognize companies in a variety of regional and global markets for outstanding achievement in areas such as leadership, technological innovation, customer service, and product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research.
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