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Navigating service consumption in the age of OPEX

27 October 2021

Services are consumed on demand to drive business efficiencies and ensure scale at speed, but Kyle Stanton at Dimension Data believes that managing the as-a-Service model requires intelligent forethought and strategic planning to mitigate the risks.

It is the era of OPEX and the time of the consumption-based service portfolio, when as-a-Service (aaS) comes of age, putting every platform and product into the cloud. It's the age of flexibility and scale, where services are consumed on demand, driven by the commodities of time and money.  

Since 2019, more IT budget has been spent on aaS solutions than on traditional ICT infrastructure and hardware. Over the past 18 months, this dynamic has been further changed by the global pandemic as organisations dove deep into digital waters to keep the remote and hybrid office lights on. Now, as enterprises look to further refine their investments and capital expenditure, the consumption-as-a-service (CaaS) model has become a tempting proposition.

Organisations are looking for speed. They want speed to market with intelligent IT that can get them there with the least risk and the most value. After the financial impact of the pandemic, cost is a driving factor. The pinch to the bottom line was significant and it's likely to take most organisations at least two to three years to recover. But they want to recover without compromise. This is where the CaaS model really gets into its stride. Designed to help companies accelerate digital transformation in line with long-term strategy, this model slides on into the business on the wheels of self-service, pay-per-use, and managed service flexibility. This allows for improved financial and operational flexibility and smooths out some of the bumps on the access to capital road.

Another benefit of the CaaS model is that it allows for organisations to innovate and to rapidly meet constantly evolving market demands, without a heavy reliance on infrastructure expenditure. Systems can be spun up or out to match development or operations needs, and services can be consumed within budget parameters. It is this flexibility that, according to McKinsey, can save up to 30% of IT spend. 

The other giant tick in the positivity column is the fact that CaaS solutions, such as HPE's GreenLake and Dell's Apex, provide technology on the organisation's terms. They allow for the comprehensive modernisation and digitisation of the business within the parameters of customer choice. It's the customer that determines the usage, the spend and the service, without compromising on their ability to adopt technology and engage with innovation. The CaaS model provides the customer with a consistent cloud platform and experience from which they can manage their applications and data; and HPE GreenLake allows for customers to provision instances and redeploy resources in on-prem environments as efficiently as in off-prem environments.

To fully realise the value of this model the business needs the right relationships. HPE GreenLake can deliver on every one of its promised mandates, and with a trusted partner on side, it can achieve these with greater efficiency and at an optimised cost. As with any cloud service implementation or investment, expertise is the key to unlocking the full value of the service within the organisation. 

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