The Economics of VMC on Dell EMC – VMware Cloud Community

Over the past year, in my work as a Cloud Economist here at VMware supporting the VMC on Dell EMC offering, I’ve had the privilege to run TCO analysis with many organizations across multiple industries and locations. In that time, I have found that some of these TCO studies produce negative results, but for a few industries and their use cases, the results are positive. Here are a few observations. But first, a word on what VMC on Dell EMC actually is.

VMC on Dell EMC: Cloud Advantages While On-Premises

VMware Cloud on Dell EMC brings the public cloud operating model to any data center, edge location or leased co-location space. The hardware and software combination yields an innovative, fully managed infrastructure delivered and supported by VMware and Dell EMC. This service is designed to deliver benefits of the cloud in on-premises data centers.

The offering is designed to be used as a Local Cloud as a Service, where, due to business or regulatory demands, putting IT assets in the public cloud is not possible.

Across the analyses I have done, I found that some of these TCO studies produce negative results, but for some industries, their use cases results are positive.  Specifically, I found three drivers that yield a positive TCO. These drivers are listed below.

Three main industries that produce a positive TCO for VMC on Dell EMC

Government (Local, State, Federal)	Healthcare	Edge Locations
32%-45%	30%-63%	61% Support

1. State and Local Government (SLED) organizations use services like VMware Cloud on Dell EMC for data center and application migration to the cloud. In some cases, regulatory requirements mean data and its underlying infrastructure must remain on premises, but there is still a need for data center and or application migration. In the cases I have reviewed, SLED environments can benefit from the VMC on Dell EMC offering and save between 32-45% from their current environment, with a faster migration to the cloud.
2. When a customer is moving off older, often oversubscribed, hardware to newer infrastructure, I see a positive TCO in most cases. This kind of Infrastructure consolidation, where the current environment is oversubscribed, routinely produces a positive TCO because VMC on Dell EMC usually runs on fewer servers optimized for utilization. Hence, updates and upgrades take less time, and there are fewer things to manage in the data center. I have found that Healthcare VDI use cases result in a 30-63% savings for these environments that require VDI on premises and have the opportunity for consolidation. VMC on Dell EMC provides an on-premises solution with managed support at a price point that can deliver significant savings to these healthcare providers. (Not to mention you can use this situation to reduce your Microsoft license burden, under some circumstances).
3. When we talk about edge computing, I mean putting compute and storage at a location closer to where it is needed to improve response times and save bandwidth. Edge use cases for the mid-market environment have resulted in a 61% decrease is staff time to support edge workloads with migration to the VMC on Dell EMC managed service.  This is significant time savings but may also result in hard dollar fleet and travel savings.

​Learn more about VMC on Dell EMC.  And go here to build your own Express TCO study. Or email us at vmc-econ-submission@vmware.com for a personalized, in-depth TCO study of your very own.