If you’re running datacenters today, you’re facing exponentially rising data traffic and demands for new cloud computing capabilities. But it’s not enough to just play catch up and meet current demand; you’ve also got to seize fast-emerging digital business opportunities or you’re doomed to fall permanently behind.

Reducing capex is a key part of meeting the changing workloads of a modern digital enterprise, and hyperscale cloud solutions can help you significantly reduce or avoid your datacenter capital expenditures – by making each component of the datacenter more efficient and easily scalable.

In conjunction with Mainstay Advisors, we talked extensively with datacenter engineers and industry experts about the impact of hyperscale, and we estimated a range of impacts spanning three key business-value categories. In my last post, I examined how a hyperscale platform could cut opex dramatically. Now let's look at the primary ways it can cut your capex:


1. Server capex savings

As enterprises shift workloads to software-defined infrastructure, they can expect to reduce capital expenditures on servers. In estimating the total savings potential for an enterprise datacenter with 75 percent virtualized workloads, Mainstay Advisors in their study calculated a 68 percent TCO savings for server-related capex spending.

Companies can also economize on server costs by optimizing how they are deployed in the hardware pool. For example, according to datacenter experts we interviewed, as a server ages and is nearing the end of its lifecycle, administrators can extend their life and redploy them to less critical workloads, extending the average life of server.

2. Storage savings.

By employing an advanced erasure coding storage algorithm, advanced hyperscale storage minimizes the replication of unstructured data across the datacenter, enabling cost reductions in disk storage by as much as 35 percent. In addition to lowering physical disk capex, you should also see reductions in storage-related software license costs.

3. Power and cooling equipment savings

A side benefit of migrating to a streamlined infrastructure is a corresponding reduction in the amount of power backup systems and cooling equipment required.

4. Network capex savings

A software-defined networking topology, combined with the physical advantages of an optical backplane feature in the Ericsson Hyperscale Datacenter System 8000 , will increase vastly improve network utilization thereby lowering costs. In addition, our analysis shows that network-layer savings will increase exponentially as the scale and complexity of the datacenter increases.

Want to further explore the economic benefits of hyperscale? If so, start by exploring this topic further in our report: An Economic Study of the Hyperscale Datacenter.

Download the study now

Cloud Infrastructure

Scott Walker

Scott Walker is Head of Cloud Infrastructure at Ericsson where he leads the go-to-market execution of Ericsson’s ever-evolving cloud portfolio, as well as building partnerships across North America. He is a cloud technology expert and pioneer, having spearheaded the launch of multiple innovative technologies, including the first of its kind direct connect program with Amazon Web Services in 2011. Scott’s career includes executive leadership positions at prominent technology firms including Cisco, AT&T, Equinix, Masergy and Neustar’s Internet Infrastructure Group. He currently resides in Dallas, TX.

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