The Total Economic Impact™ Of HPE GreenLake

Cost Savings And Business Benefits Enabled By GreenLake

To keep up with the rapid pace of digital transformation, organizations across industries need to adapt their business models — as well as their infrastructure. While public cloud enables IT teams to support businesses in a flexible and nimble manner, most organizations cannot eliminate on-premises infrastructure due to security, existing workloads, or other requirements. HPE GreenLake offers a pay-per-use, self-service, managed experience that keeps workloads on-premises with a cloud-like experience.

HPE GreenLake is a scalable IT infrastructure service that provides a usage-based IT platform and vertical-based workloads that are aligned to capacity usage. IT organizations can easily scale up to handle fluctuations in demand and receive personalized support to augment their IT teams. This flexible hybrid IT model provides organizations with the agility to scale their environment without the usual delays associated with procuring and managing new infrastructure.

HPE commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by subscribing to HPE GreenLake.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of HPE GreenLake on their organizations.

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers with multiple years of experience using HPE GreenLake. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization.

Prior to using HPE GreenLake, these interviewees noted how their organizations managed multiple data centers with extensive physical and virtual infrastructure footprints. Technology purchases were often decentralized, creating a complex web of hardware and software from myriad vendors.

Organizations also experienced arduous procurement cycles that involved significant planning and budgeting efforts that made keeping up with current technology trends difficult.

After the investment in HPE GreenLake, the interviewees said it enabled their IT teams to be more responsive to organizational demands and reduced the time-to-market for infrastructure-backed IT projects. Additionally, organizations better aligned their spending with capacity needs. This led to a reduction in overprovisioning and ancillary support spend.

Key Statistics

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    Return on investment (ROI):

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    Benefits PV:

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    Net present value (NPV):

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Key Findings

Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:

  • Shortened time-to-market of deployed IT projects by 80%. Interviewees noted that HPE GreenLake enabled them to quickly right-size capacity and accelerate their response to business demands. Their organizations could maintain a metered capacity buffer to quickly deploy infrastructure, without costly up-front capital expenditures and lengthy procurement processes. For the composite organization, this amounted to $21.1 million over three years.

For , shortened time-to-market of deployed IT projects could total million.

  • Achieved operational savings of 65%. Interviewed decision-makers said their organizations used their HPE GreenLake investment as a catalyst to simplify and consolidate their infrastructure footprints. With HPE GreenLake, organizations kept pace with current technology, ensuring that they were using the most up to date and efficient solutions. Additionally, by simplifying their stack under a single vendor, organizations could eliminate ancillary support spend for other hardware and software solutions. With this benefit, the composite organization saw a benefit of $3.3 million.

For , operational savings could total million.

  • Reduced total cost of ownership (TCO) for infrastructure by 45%. HPE GreenLake enabled interviewees’ organizations to avoid overprovisioning on infrastructure and eliminate expenses for technology refreshes, especially as infrastructure requirements continue to evolve. With HPE GreenLake, these organizations had access to modern, more powerful technology and scaled their usage up or down as required by their business needs. This benefit was worth $7.1 million for the composite organization.

For , reduced cost of ownership (TCO) for infrastructure could total million.

  • Improved IT resource efficiency by 60%. With HPE GreenLake supporting organizational choices of on-premises infrastructure and data center management tasks (including support, administration, and capacity planning), the interviewees’ organizations reallocated internal IT resources to more strategic business initiatives. For the composite organization, this benefit was worth $2.3 million.

For , improved IT resource efficiency could total million.

Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:

  • Financial flexibility. Decreased capex spending and flexible capacity payments allow organizations to reduce the cost of capital and avoid opportunity costs.
  • Improved risk management. With HPE GreenLake, organizations are able to stay current with refreshes and utilize HPE expertise to proactively manage and support on-premises infrastructure.
  • Improved transparency. Simplifying billing and eliminating shadow IT spend improves financial transparency for technology decision-makers.
  • Improved sustainability. Staying current with hardware technology ensures that organizations are using the most energy efficient and environmentally friendly solutions. With HPE’s expertise, organizations can improve technology utilization to minimize environmental impact.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

  • Implementation costs of $354,000. This includes planning, defining requirement, data migration, and testing on the HPE platform. Additionally, the implementation time considers the internal procurement process requirement. The full end-to-end transition takes six months for the composite organization and the equivalent of 12 FTEs for 40% of their time.

For , implementation costs could total .

  • HPE GreenLake annual costs averaging approximately $5 million. This includes the annual HPE GreenLake contract across the entire infrastructure, including compute, storage, and backup.

For , HPE GreenLake fees could total million over three years.

  • Ongoing annual labor costs of $139,000. This includes four FTEs spending 25% of their time supporting the HPE GreenLake environment.

For , ongoing labor costs could total .

The decision-maker interviews and financial analysis found that a composite organization experiences benefits of $34.4 million over three years versus costs of $13.2 million, adding up to a net present value (NPV) of

could experience benefits of million over three years versus costs of million, adding up to a net present value (NPV) of million and an ROI of .

Net present value (NPV) 21.2 million

“[HPE GreenLake has] been a never-ending value generator. It’s not a one-time shot; we’ve invested in more than hybrid infrastructure, this is a partner.”

Director of global infrastructure, operations

“[HPE] GreenLake gives us more transparency and more flexibility.”

Head of engineering computing services, manufacturing

Benefits (Three-Year)

Faster time-to-market when deploying global IT projects Operational savings TCO savings IT resource savings Back-office savings

TEI Framework And Methodology

From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment GreenLake.

The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that GreenLake can have on an organization.

  1. Due Diligence

    Interviewed HPE stakeholders and Forrester analysts to gather data relative to GreenLake.

  2. Interviews

    Interviewed four representatives at organizations using GreenLake to obtain data about costs, benefits, and risks.

  3. Composite Organization

    Designed a composite organization based on characteristics of the interviewees’ organizations.

  4. Financial Model Framework

    Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.

  5. Case Study

    Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.


Readers should be aware of the following:

This study is commissioned by HPE and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.

Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in GreenLake.

HPE reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.

HPE provided the customer names for the interviews but did not participate in the interviews.

Consulting Team: Sam Conway,Isabel Carey

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