itb-au logo
Story image

Flexible consumption models the way to customer's hearts

New insights from GlobalData show that infrastructure vendors are, more often, promoting flexible consumption options for on-premises IT in order to grow their customer base.

According to GlobalData, there has been a growing demand from enterprises for more flexible approaches for consuming on-premises IT, and infrastructure vendors ranging from HPE, Dell EMC and Lenovo, to IBM, Cisco and NetApp are all targeting this perceived increasing demand.

Flexible approaches, defined by GlobalData, include pay-per-use offerings, vendor-managed private clouds, and flexible financing for on-premises IT investments.

Public cloud providers, including AWS, Microsoft, Oracle, and Alibaba. are also honing in this emerging need for more adaptable IT delivery and contracting models with managed, or easy to manage, on-premises versions of their platforms, according to GlobalData.

GlobalData principal technology analyst Chris Drake, says, “The growing demand for more flexible ways to consume on-premises IT is being driven partly by the widespread popularity of the public cloud as an elastic and often more cost-effective way of delivering and accessing IT resources.”

However, according to Drake, at the same time, many enterprises need to maintain at least some of their IT resources on-premises, within their own data centres rather than rely on public cloud providers for those resources.

Alongside these drivers are various perceived benefits of malleable on-premises IT consumption, including reduced upfront costs, the avoidance of overprovisioning, elastic provisioning, and improved consumption-to-cost alignment, he says.

Drake says, “Several factors suggest that flexible consumption offerings for on-premises IT will continue to attract new customers and generate growing revenue for vendors and service providers. These include the tendency among providers to offer pay-per-use options for a growing share of their overall solutions portfolio.”

However, flexible consumption offerings for on-premises IT will complement, rather than replace, traditional IT businesses, he says.

Things that could contribute to weaker than expected growth for the former include the risk that solution portfolios will be poorly organised and communicated to potential markets, as well as factors that encourage enterprises to favor a CapEx approach for particular solutions, over an OpEx model, says Drake.

Story image
Microsoft, Verizon join forces to accelerate delivery of 5G applications
“By bringing together Verizon’s 5G network and on-site 5G Edge platform with Microsoft’s expertise in cloud services, we will enable the development of the next generation technologies everyone has been envisioning.”More
Link image
The importance of data resilience in the current cybersecurity climate
Protecting an organisation's data is one of the most crucial functions of any CISO. Strategies should be in place where data is stored securely and cost-effectively.More
Story image
HPE awarded $160 million contract to build supercomputer in Finland
The supercomputer, which is referred to as ‘LUMI’ by EuroHPC JU, will help European researchers and private and public organisations significantly advance R&D and drive innovation in areas such as healthcare, weather forecasting, and AI-enabled products.More
Story image
Gartner: The 10 rules CIOs must follow for rapid IT cost reduction
CIOs need to approach cost cutting in the least damaging way to the medium-and long-term health of the business."More
Story image
SOC, SIEM, SOAR and SASE define Fortinet’s Security Fabric
Cornelius Mare, Fortinet A/NZ Director, Security Solutions, deciphers the jargon and explains how an alphabet soup of integrated security services spells comprehensive protection for your network and ensures business continuity.More
Story image
iText provides open source PDF tech for developers & business users
iText provides versatile open source PDF technology for developers and business users – from PDF libraries to low-code products.More