THE FINANCIAL VALUE OF AS-A-SERVICE
CIOs know the drill: Obtaining budget for capital
expenditure is a pain point. "The more hardware you have
to replace, the more pleas for capital dollars," said Francis.
That's why some companies are transitioning away
from CapEx models, in which IT equipment is bought
and then depreciated over a three-to-five-year period.
Instead, they're adopting as-a-service models, where they
only pay for the infrastructure capacity they actually use,
based on metered usage.
"The most digitally advanced organizations are leading the
way with extensive adoption of flexible consumption
models. These consumption models enable them to pay
for enhanced investments that transform IT into an agile
as-a-service platform without breaking the bank," said
Andrew Buss, research director for European Enterprise
Infrastructure at IDC. "IT infrastructure vendors are
quickly recognizing this shift and have begun offering
a range of solutions for customers. However, different
customers are at different stages of acceptance and adop-
tion, and vendors will need to tailor their messaging and
approaches accordingly."
As companies make this transition, they should
consider these factors:
Costs of annual
capital expenditures
on IT infrastructure
Number of global
IT projects conducted
per year
Percent of global IT
projects that require
additional provisioning
of infrastructure or
capacity
Average length of
time to deploy a global IT
project (in months)
Average number of full-
time employees required
for a global IT project
Number of full-time
employees required
to support IT
infrastructure tasks
Average fully loaded,
annual salary for a full-
time IT resource
You can run the actual numbers here
to receive a custom analysis.
Learn more about the As-a-Service solution
from HPE GreenLake here.
