Published By: Dell EMC
Published Date: Aug 17, 2017
In a market where compute and storage resources can be bought on demand with a credit card, vendors
of on-premises hardware are seeking to tip the scales in their favor with ‘cloud-like’ pricing models that
eliminate the need to commit capital to new platforms. At Dell EMC World in May, Dell Financial Services
(DFS) rolled out Cloud Flex for HCI (hyperconverged infrastructure), part of the company’s push to evangelize
the start-small-and-scale-up virtues of HCI technology.
Cloud Flex lets customers acquire equipment on an all-opex basis, with no up-front product cost, steady
monthly payments that reduce by up to 30% annually, and the ability to turn in equipment any time after
12 months without penalty. It’s part of a series of moves by Dell EMC meant to ease the financial risk of
sticking with on-premises infrastructure in a cloud-enabled world
Your customers are asking for it. Your developers are ready for it. Your operations team is demanding it. What’s behind this momentum?
Software-as-a-Service (SaaS) is a fundamental shift away from traditional software licensing to a market-driven subscription model. Keystone engaged 20 ISVs who successfully transitioned to a SaaS model, and found:
New customer segments open thanks to lower adoption and operating costs.
With less complex infrastructure under SaaS, customer TCO drops.
ISV products improve with value-added cloud services and SaaS data capabilities.
Financial predictability improves with recurring revenue model.
New pricing models aligns ISV value to customers’ business needs, driving increased revenue.
Additional, significant operational benefits from switching to a SaaS model.
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The collection of product usage data increases the speed of product development by 33%. –
It is imperative that emerging IaaS providers and MSPs gain deep insights into existing pricing models so they can attain low cost structures, increase profitability, boost competitiveness, and improve customer retention.
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