Fabric-Based Infrastructure Best Practices Could Deliver Six-Figure Savings

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Ensure that the team involved in making the selection works closely with procurement to structure the most favorable contract terms and conditions for the organization. Procurement should instruct IT participants how to engage with the vendors on technical aspects, including SLA definitions and recourse, without controlling the business and contractual negotiations.

Organizations are settling for 10 to 20 percent lower discounts on data center convergence than could ultimately be achieved, according to Gartner, Inc. Gartner said that if organizations develop a negotiating strategy supported by IT and procurement they could achieve significant savings with fabric-based infrastructure (FBI).

Gartner defines FBI as an emerging area of vertical integration of hardware and software infrastructure with automation on top, which promises to help IT organizations realize their vision of a dynamically optimized data center. FBI differs from fabric-based computing (FBC) by enabling existing technology elements to be grouped and packaged in a fabric-enabled environment to achieve infrastructure convergence.

“IT procurement is often relegated to a subsidiary role after IT and business management has done most of the negotiations with the vendors. In some cases vendors will press users and IT to bypass competitive RFPs so as to expedite integration, shipment and setup of the solution,” said George Weiss, vice president and distinguished analyst at Gartner. “With FBI and converged infrastructures, the entire procurement process must be monitored and executed with careful guidelines, so that all parties involved in executing the deal understand what the deliverables, commitments and long-term implications of the FBI contract are.”

Gartner recommends 11 steps to evaluate, select and negotiate procurement of FBI or converged infrastructure solutions. “If these best practice steps are followed, there is scope for additional benefits and for discounts as high as 20 percent off list prices, depending on the nature and stage of the contract,” said Mr. Weiss. “We frequently see contract sizes in the $2 million to $3 million range when converged solutions are requested. Even 10 percent could offer the potential for $200,000 to $300,000 savings.”

 

Related Topics : IBM Looks to Redefine Industry Standard Servers, APC, Brocade, Citrix Systems, Data Center

 
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