One of the key drivers of public cloud growth has been the opportunity to embrace a consumption-based subscription model for IT infrastructure and services. This has typically made it easier for IT to budget accurately and, more important, shifted the model from Capex to Opex.
IT teams are now looking for the same kind of flexibility and Opex model from their on-premises infrastructure. The reality is that on-premises infrastructure is as important in the cloud era as it has ever been.
At one point, IDC predicted that 85% of organizations would migrate workloads back from the public cloud to on-premises infrastructure or private clouds. Key reasons cited were inconsistent security, inability to meet service-level requirements, unpredictable and rising costs, and limited visibility and control.
On-premises infrastructure can mitigate those risks and, with private and hybrid cloud solutions, give IT more comfort and control over vital enterprise requirements such as performance, business continuity, availability, governance, security and regulatory compliance.
However, as IT organizations invest in modern infrastructure technologies to support their private and hybrid clouds, they are also looking to apply similar pay-per-use consumption models for on-premises infrastructure.
According to a survey by Enterprise Strategy Group, 83% of IT decision-makers consider the freedom to deploy workloads wherever they want to be a top five technology initiative.
Why the push toward subscription pricing for on-premises infrastructure, and what are the benefits to IT and the organization? Here are 10 reasons why consumption-based pricing can optimize business and operational value for your organization:
- Capex vs. Opex spending, with simplified and predictable payments.
- Purpose-built, turnkey hardware and software solutions based on standardized components.
- Easy and reliable scalability, enabled by teaming with an experienced cloud partner.
- No vendor lock-in at any level—hardware, software or services.
- A single price for hardware, software and services, including deployment, support and asset recovery.
- Resilience, security and access to applications where and when they are needed, from the data center to the edge to multiple clouds.
- Expert deployment and support for the full solution.
- Access to self-serve capacity reporting to help users plan for expansions.
- Asset recovery services at the end of the term.
- Freedom of choice in deployment models to make provisioning times and costs more efficient and outcomes more predictable.
Taking the next step
Today’s reality is that every IT organization would like the flexibility of using consumption-based subscription models across its entire infrastructure portfolio—whether in public clouds, edge environments or on-premises infrastructure.
Today’s reality is also that not every hybrid cloud solutions provider can offer the same level of flexibility and freedom of choice across its on-premises infrastructure solutions.
There is one vendor that can provide that flexibility, however, delivering all of the top 10 benefits discussed in this article. For more information on how your organization can maximize the benefits of using a subscription model for on-premises infrastructure, please visit Dell Technologies.