Navigating service consumption in the age of opex

In this era of operational expenditure (opex) and the consumption-based service portfolio, the as-a-service model is coming 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 information technology (IT) budget has been spent on aaS solutions than on traditional information and communications technology infrastructure and hardware. Over the past 18 months, this dynamic has been affected by the pandemic as organizations dove deep into digital waters to keep the remote and hybrid office lights on. Now, as organization look to refine their investments and capital expenditure, the consumption-as-a-service (CaaS) model has become a tempting proposition.

Organizations 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 organizations 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 organizations accelerate their digital transformation in line with their long-term strategy, this model slides 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 road to access to capital.

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

The other giant tick in the positivity column is the fact that CaaS solutions, such as Hewlett Packard Enterprise's GreenLake and Dell's Apex, provide technology on the organization's terms. They facilitate the comprehensive modernization and digitalization of the organization within the parameters of customer choice. It's the customer that determines the usage, the spending and the service, without compromising on their ability to adopt technology and engage with innovation.

The CaaS model gives organizations a consistent cloud platform and experience from which they can manage their applications and data, and HPE GreenLake allows customers to provision instances and redeploy resources in on-premises environments as efficiently as in off-premises environments.

To fully realize the value of this model, the business needs the right relationships. HPE GreenLake can deliver on all of its mandates, and, with a trusted partner, it can achieve these with greater efficiency and optimal cost. As with any cloud-service implementation or investment, expertise is the key to unlocking the full value of the service within the organization.

Kyle Stanton is Go-to-Market Executive for Intelligent Infrastructure at Dimension Data