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Friday, July 27, 2007

Does your data center drive revenue?

Having worked in data center operations for most of the last decade, one of my chief frustrations has always been that companies tend to view operations as a cost center. The focus of most companies' data center operations efforts is on cutting costs while maintaining performance. Cost reduction is important -- a company that spends a dollar to cut three dollars in expenses is better off than a company that spends a dollar to make two dollars in revenue. But a myopic focus on the data center as a place to cut costs causes businesses to miss great opportunities to use their data center to drive revenue.

For example, a well-known medical company is using server repurposing software not only for cost-cutting on the disaster recovery and failover site, but also for revenue generation via development cycle acceleration. Using server repurposing software in their development and test lab deployment automation enables them to shorten their product lifecycle by 25%. The extra speed allows them to beat their competitors to the market and earn more revenue.

Does Time To Market really translate to revenue? Absolutely. At a recent conference out here in California, a panel of top level CIOs reiterated that TTM is one of their most important metrics. In fact, we could argue that in most business environments, success depends on being faster than competitors by weeks, or even days. Speeding up time to market through data center improvements can drive huge revenue for a company.

Companies that install Scalent to automate their development and test lab deployment often think in terms of the cost savings that Scalent offers them. With Scalent, they no longer have to manually reconfigure the data center and physically recable infrastructure. This reduces operational expense, which leads to profit.

But perhaps we should think more about revenue. The aforementioned medical company estimates that they will generate an extra $5 million dollars in revenue over the next three years by using Scalent software. So ask yourself -- how much is my IT group making for the company today -- then come chat with us. You won't regret it.

-- David Silver, Product Management

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