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Will pay-per-use become the standard model for IT investment?

By Paul Lyons - Wednesday, July 12th, 2017

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In today’s age of disruption, the pressure is on to develop versatile IT infrastructures, find valuable insights in data, proactively safeguard against cybercrime, and provide engaging digital experiences. The problem is that many businesses want to transform their IT like this without transforming the way they acquire it. Is pay-per-use the answer?


HPE Financial Services has published The Rise of Pay-Per-Use Funding Models in the Datacenter, which looks at current trends surrounding more flexible payment options.


With the right funding model, you can take advantage of the latest technology and make your business goals a reality, be it avoiding delays, lowering upfront costs, simplifying procurement, or reducing over-provisioning risks.


Will pay-per-use to become standard?


According to HPE Financial Services, pay-per-use will become the standard model for infrastructure investments. In its own survey, 93 per cent of respondents stated that the availability of flexible payment options or pay-per-use is important when selecting an IT infrastructure provider.


But when it comes to infrastructure providers, survey respondents are still willing to work with traditional IT vendors. In fact, 65 per cent of surveyed organisations moved back or considered moving back from cloud to a traditional infrastructure provider because they offered better capabilities and pricing. What’s more, 94 per cent of respondents reported pay-per-use as an important decision factor when considering moving back to a traditional IT infrastructure provider.


In terms of the type of pay-per-use solution organisations prefer, 79 per cent want to see options in the future that bundle equipment, software, services, and maintenance. This demand for a flexible, all-in-one package is evident across the entire IT infrastructure landscape.


“Enterprise customers want pay per use options and the availability of these payments options are a key metric in the IT infrastructure selection process,” says Susan Middleton, research director for IDC’s Technology Financing Strategies and Technology Valuation Services programs. “The biggest challenges with current pay per use offers are lack of transparency and flexibility. Customers want pricing details and options to scale or reduce IT capacity.”

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