So for a number of reasons, state and local governments across the country are constantly looking to simplify their information technology infrastructure, reduce complexity in their IT systems. It could be to help make systems more secure or to prepare for a solid enterprise cloud environment. But across the board, government systems are overrun with silos and layers of legacy technology driving up costs for public sector IT shops. While data center consolidation and cloud-first strategies have made a dent, there's still some work to be done to find the efficiencies that governments need to move themselves forward.
Coming to you live from Washington, DC, this is called Context, States Group Radio's new series forage. This is Context, where we dive into all the latest that you need to know about particular issues and events happening in the state and local government information technology community. And that's where hyper-converged infrastructure comes in. Instead of spending 80% of their budgets on operating expenditures, governments can use that approach to help drive down costs, increase security, and embrace the cloud more efficiently.
Welcome to the second episode of Context here on State's Group Radio, where we're talking about how to reduce complexity with hyper-converged infrastructure. Our guest today is Nutanix's National Sleds Sale Director, John Pelletier. John, thanks so much for joining us today on Context. Good morning, Jake, thanks for having me.
Today's episode of Context is sponsored by Nutanix. And with that, let's get started on the question. So John, Nutanix, you guys have taken a pretty interesting approach to helping state local and education customers reduce IT complexity. Can you tell us a little bit more about what hyper-converged infrastructure is and really why state and local governments and any governments in general should be considering it?
Absolutely. So hyper-converged infrastructure is a purpose-built appliance that natively converges storage, network, and virtualization resources. And by natively, I mean that the appliance was built that way and delivers that functionality out of the box versus having multiple elements be architected into a converged solution. This is critical for a government IT organization and government organizations overall.
They should consider these because it reduces the complexity of having multiple infrastructure silos in the data center. It increases efficiency by having one layer of infrastructure perform what it used to take three to do. It enhances security by minimizing the points of vulnerability. And it drives down costs because it can start small and pays you grow versus having to predict usage three to five years out and purchasing enough to cover the highest use case scenarios.
Given that, John, what does the implementation process look like for hyper-converged infrastructure and really what steps the states need to take now to make that happen? From our experience, this is one of the simplest implementations. It typically doesn't require many hands-on and is completed in a few hours to a day. Rarely the implementations can take longer depending on the hopes environment, but that's not the norm.
Our customers are achieving a return on their investment on average as a little seven and a half months. We always advise our customers to identify an opportunity to try and maintain it. The beauty of our solution is that you really can start with a small investment that allows you to see what sort of impact it has on your environment. Then you can grow incrementally as you see the value of the company to your mission.
You don't have to make a large enterprise-sized investment to realize the value. And in fact, this is how most of our customers have started to maintain it. The majority of our first time customers make additional purchases within six months of their first experience with the tenant. And we're so confident that when our state government customers try it, they'll see the value and grow from there.
That's great. That's a fascinating approach and really that's a pretty remarkable quick time to an ROI there. So that's really interesting, especially in the government sphere. How should something like a hyperconversion structure, how should that fit into a government's already existing cloud and consolidation strategy?
The fact that hyperconverged infrastructure consolidates three layers of infrastructure into one elegant layer, makes it a no-brainer for data centers and for IT consolidation. Virtualization enabled a dramatic consolidation of compute resources like servers. But in order for virtualization to do its magic, like migrations not be about the hardware, it needed massive amounts of storage to enable its functionality. So you could consolidate servers, but then you had massive storage in networking infrastructure that really prevented meaningful consolidation.
So on the cloud side, Nutella hyperconverged infrastructure is actually an enterprise cloud platform. And what I mean by that is it's not just a box that does what other boxes used to do. It's actually a platform for which IT organizations can simplify the management of different initiatives. Think of it as the iPhone of the data center.
iPhones are really a platform for a variety of other things that are important to our day-to-day lives. Calendars, cameras, GPS, text messaging, social media, and the list goes on. As an enterprise cloud platform, Nutanix is helping government data centers deliver cloud-like experiences to the users and by extension the taxpayer. The other on-prem resources with advantages like fractional consumption, one click upgrades, faster time to market.
And on top of this is compatible with AWS and Microsoft Azure, so it can serve as a bridge between your internal resources and the public cloud, therefore allowing customers a true hybrid cloud model. And one more thing on the enterprise cloud, our view of the world is that more predictable workloads, things that are steady state on a day-to-day basis, do better and are more cost-effective in a private or on-prem environment, and that workloads that are unpredictable or that have a high-intense season or bursting for limited periods of time do better in the public cloud. So we don't see public cloud as the right solution for every workload or customer, as it serves a great purpose for an acute moment, like a hotel room or rental car. They serve a much-needed purpose for a short amount of time, but they're not practical or cost-effective solutions for long-term day-to-day living.
But for Nutanix, we believe we're a key part in helping organizations take advantage of the best aspects of both models. That's your right answer. It's super cool to see how all of this pieces of the puzzle here as we kind of move into the future of what the state IT shop looks like. Kind of cool to see how all of those pieces fit together.
So John, last question here. What are some quick wins and results that states can see as soon as they start adopting hyperconverged infrastructure? From a Nutanix perspective, IDC did some research to uncover how our customers were doing with their investments, and what they found was pretty interesting. So on average, customers are realizing an average five-year ROI of 510% of their initial investments, deploying their storage infrastructure 85% faster, spending 71% less time managing their hardware, and reducing unplanned downtime by 99.7%.
And by the way, the average five-year TCO savings is 58%. So we really think for some big wins and ROI waiting for government organizations to make investment Nutanix. Well, John, I'd say there's a ton of potential in what hyperconverged infrastructure can bring to governments across the country, and it'll be fascinating to stand touch with you guys on this as it moves forward and continues to be adopted more and more in governments across the country. So thanks for offering some context on this today.
Jake, it was my pleasure. Thanks again. That's it for today's edition of State's New Radio Show Context. Stay tuned to StateTube.com for more news events and more time media as we continue to engage key state, local government information technology decision makers every day, online, and in person's music featured on today's show is brought to you royalty for the future.
It's a show is brought to you royalty free from Stenstown.com, so all the music on the StateTube Radio Podcasts come from and thanks again to Nutanix for sponsoring this episode of Context. I'm Jake Williams, StateTube's Manager of Strategic Initiatives, and we'll catch you next time.