IT Operations Management (ITOM)

Benefits of the software-defined data center explained

Benefits of the software-defined data center explained


The transition to the Software-Defined Datacenter (SDDC) is not just another cool technology—it’s a journey. The SDDC delivers real business benefits that make it truly compelling. There are cost savings and a Return on Investment (ROI) that IT organizations are realizing along the way. That’s why executives as well as geeks will want to learn more about this topic.



VMware has identified three phases on the journey to the SDDC:

  • Phase I: Abstract, pool
  • Phase II: Automate
  • Phase III: Empower


Each of the phases provide cost savings and additional benefits that are compounded. The savings in phase I are primarily related to CapEx through consolidation. Phase II savings are achieved through lower OpEx due to automation. The savings in Phase III are achieved because organizations can offer much greater agility, as they offer IT as a Service. This truly empowers their business.


Image source: VMware


VMware conducted a customer survey regarding the journey to IT as a Service and the implementation of SDDC. They found that the journey is an accelerating one. As enterprises transition from one phase to another, they don’t just achieve “more of the same”. Each phase builds on the next to increase the ROI and benefits from a SDDC initiative. Customers in the survey found average savings and ROI of 164 percent in phase I with further benefits leading to eventual ROI of 222 percent on average by phase III.


We wanted to offer you further insights on this topic, so we sat down wth industry analyst, Bernd Harzog of The Virtualization Practice to discuss the benefits of the SDDC. Bernd is a highly regarded industry expert in virtualization and cloud management. You can read his  blogs at


This video is the second in a four-part series of videos that will be published on this blog. The first video provided a clear explanation of the software-defined datacenter. You can watch the first video here.


Videos three and four in the series will be posted next week. Part three will provide an overview of the management stack required to optimize the SDDC. The fourth video will focus on the role of analytics in the SDDC.


Bernd recently published a report on this topic entitled, “The Business Benefits of the Software-Defined Datacenter”. You can download a copy of this report here. 


This is a very informative tutorial on the SDDC, and we welcome your questions and comments. For additonal information on this topic and free software from HP, please check the following links:



  • infrastructure management
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About the Author


Ken is responsible for worldwide marketing of HP’s virtualization and systems management products. His experience includes over 20 years in marketing, product management and business development. In addition to IT management software, Ken's background includes enterprise storage and systems with Hitachi Data Systems and Fujtsu.