How businesses are embracing the consumption-based financing model
The consumption-based financing model is a no brainer for enterprises. It’s scalable, flexible and gives businesses greater control on the costs for data centre storage and compute.
I’d argue the traditional alternative of investing makes businesses less agile and it restricts them with costly overheads.
Cisco Open Pay winning for our customers
We were also able to move quickly for Insight Enterprises, a Cisco partner and IT reseller.
“Open Pay from Cisco Capital has enabled Insight to provide both consumption (capacity on demand) and financial flexibility that is missing in most private/hybrid cloud deployments,” said Carlos Sotero, Insight’s IT Director.
“It enables us to have additional capacity already on the data center floor that can be provisioned within minutes and paid for with flexible terms.”
We were also able to help Dutch managed services provider Open Line, who needed to be able to quickly respond to the conditions around them, without having to fork out for a meaty overhead on their data centre.
“Our business wants to be ready for whatever the future is going to bring, so I use a financial buffer to avoid risks,” said Michiel Lamoen, chief financial officer Open Line.
“The Open Pay contract allows us to align our financial risks with our business risks.
“Heading for 2020, Open Line has a very ambitious business plan. We expect to see significant growth, due to the overall growth of the market.
“To enable this growth it is important that we are able to ensure continued quality.
“We believe our partnership with Cisco and Cisco Capital will allow us to align our financial risks with our business risks. In this way, we are able to ensure the quality and growth of Open Line.”
For Open Line we were able to look at the customer need, meet it, and move quickly. This is crucial for businesses today as they look to get to grips with the fast-moving world of digital transformation.
On top of this, Cisco Open Pay wasn’t available in the Netherlands, but we were able to move quickly and get the tech deployed to meet their needs.
Why have these businesses embraced the consumption-based model?
I’d argue this way of doing things is only going to get more important for organisations in years to come.
In today’s market, no organisation can have 100% confidence of what will happen in the future.
The days are gone when a business could invest in a data centre and know for certain they’ll utilise it to its full capabilities.
It means businesses that go down this route will always be held back by wastage, as they pay for capacity they will never use.
For many businesses today who are seeking that extra agility, there is no longer the need to invest huge amounts of capital into a data centre up front.
Rather than restricting their flexibility, we want companies to openly embrace picking and choosing the technology they need as their business requires it.
A pay-as-you-play model gives businesses a stronger handle on costs – they avoid the costly overhead while being able to flex and scale-up when required.
There is also a growing trend of organisations using analytics to maximise the value from their data centre.
By using the right tools, it can enable the technology to be much more targeted and responsive to business needs.
If you’re interested in finding out how the consumption-based model can support you, the most robust way is through Cisco Open Pay. Find out more here www.cisco.co.uk/dc-open-pay.
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