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Last May, IDC published a study, sponsored by Red Hat, that analyzed the business value of Red Hat OpenStack Platform to organizations across several verticals. From an outstanding return on investment (ROI) to increased productivity to reduced costs, we were not surprised to see the value that Red Hat OpenStack Platform was delivering to enterprise users.
To conduct this study, IDC interviewed eight organizations asking survey respondents a mix of quantitative and qualitative questions about the impact that Red Hat OpenStack Platform has had on their IT operations, businesses and cost of deploying private cloud services. Interviewees encompassed the financial services, manufacturing, financial technology, information technology, medical research, automotive, education and healthcare sectors.
A nearly 600% return on investment
While value is not only measured in dollar form, we were excited to see just how much Red Hat OpenStack Platform was able to save these customers. From a significant ROI to reduced costs in operations to total revenue gained, the value of Red Hat OpenStack Platform was clear. On average, IDC projected organizations using Red Hat OpenStack Platform could benefit from:
A 591% five-year ROI
The ability to break-even on their investment within five months
A 53% reduction in infrastructure costs
And there was an $18.6 million in total revenue gained per year
When businesses use Red Hat OpenStack Platform, their private cloud is designed to be a cost-effective architecture. The study participants reported that Red Hat OpenStack Platform proved to be a more cost-effective solution than either previous infrastructure-based approaches or commercial alternatives considered for a variety of reasons including:
Reduced infrastructure cost
More affordable to scale
Capex and opex control
Fostering in-house capability
Improved speed, agility and fulfillment
The financial benefits provided by Red Hat OpenStack Platform were not the only outcomes organizations in the IDC study cited. Because OpenStack is highly modular, allowing the platform to scale and adapt to innovations more quickly, customers found that they also became more agile in support of business needs.
Projected highlights cited by IDC included:
33% faster fulfillment of service requests due to higher IT staff productivity
13% more productive application development
59% faster rollout of new applications by improving the overall lifecycle involved
33 hours saved per user per year in fulfillment
And a 99% reduction in unplanned downtime
With an agile environment in addition to improved private cloud services and infrastructure, developers were creating more features more quickly, which frequently led to an increase in innovation and a faster time to market.
A leading open source cloud platform
Our highly scalable and agile Infrastructure-as-a-Service (IaaS) solution, Red Hat OpenStack Platform, is hardened, tested and supplied with enterprise-level support and training. Red Hat OpenStack Platform is a strategic part of Red Hat's vision for open hybrid cloud. It's the on-prem foundation that can help organizations bridge the gap between today's existing workloads and emerging workloads.
When the benefits cited by IDC are combined, organizations expect to realize an average return of nearly six to one on their overall investment in Red Hat OpenStack Platform due to better agility, flexibility and scalability. If you’re interested in learning more, check out The Road Ahead for Red Hat OpenStack Platform and stay tuned for our latest news in the next few months.
Source: IDC White Paper, sponsored by Red Hat, Red Hat is Helping Organizations Optimize Private Cloud Service Delivery, May 2019
About the author
Red Hat is the world’s leading provider of enterprise open source software solutions, using a community-powered approach to deliver reliable and high-performing Linux, hybrid cloud, container, and Kubernetes technologies.