We are living in a world where the cost of simple food basics has increased by 60% in the last couple of months & even more recently we have seen the chancellor roll out a mini budget they must have put together while drinking subsidised vodkas in the house of commons bar which saw the pound take a serious nose dive against the dollar, not to mention fuel price rises.
The IT industry has also seen its fair share of turmoil in the last 12 months with what we called 'chipageddon' https://www.simoda.co.uk/post/chipageddon-how-we-are-helping-solve-the-critical-issues-we-are-seeing now we are seeing the big boys HPE, Cisco, Dell move towards a price increase this month.
HPE 20%
Dell 25%
Cisco 20%
What does this mean for our customers ?
In simple terms you are going to pay more for your kit, yes that is obvious however here are a few other things to consider.
Does this make the move to public cloud more commercially viable ?
It still remains an option however price increases will also affect the hyperscalers in the long run. The move towards public cloud should always be made when you have taken time to assess the short, medium & long term implications, this is where you need to engage with us to help you model your workloads on premise & in the public cloud, even with price increases we still see a substantial saving by keeping your workloads on premise and deploying your environment on the cloud that comes to you model from HPE, GreenLake.
If you are already in the public cloud then you need to talk with us regarding our 'Cloud Value Solutions' we have spent a long time ensuring we have solutions in place to help our customers drive efficiencies & optimise their public cloud to ensure value for money.
How can you lock in pricing ?
This is difficult, many years ago a commitment from a customer to a vendor was enough to guarantee a price structure for up to 3 years however due to the volatility of the pound this is unachievable right now, however if you adopt HPE GreenLake for example you will secure your costs & enable predictable growth for up to 5 years. This is a very good way of sourcing a price structure for you business, especially on storage.
So it is all about HPE GreenLake ?
Well no actually, however we feel that HPE have hit the right note with there everything as a service strategy, this fits with us and the way we solve issues, address challenges & achieve objectives for our customers.
What do you do now ?
Simple answer, get in touch today and let our team help you understand the impact price rises will have on your business.
Thanks for reading
Lee Wragg
Technology Solutions Director
Simoda Limited
lee.wragg@simoda.co.uk
0114 553 3600