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“Pay As You Go” IT

By March 15, 2016September 11th, 2020Blog
Pay As You Go Image

Have you considered how much more efficient and cost effective IT spending is when you can pay only for what you need?

The traditional model we’ve all lived with for the last 30 years is to make large, capital purchases to stand up resources we think we can utilize over the next 3-7 years. The problems and challenges have been numerous.

  • It’s a big purchase
  • We paid for it before it became truly useful
  • Operating expenses often equaled or exceeded the original purchase
  • Scaling to growth or contraction was a challenge
  • Business plans affected useful life
  • We needed special, talented people to keep running

The traditional model was usually about 80% fixed expense, and 20% variable expense.

A few years ago, we all witnessed a ground swell of epic proportions with the advent of Cloud services. At first, they were random applications for specific types of devices. Now we have fully mature and tested IT ecosystems that can make dynamic and profound impacts on any business willing to explore the myriad of solutions available.

The most relevant characteristics of the new “Pay As You Go” IT services include:

  • Converting to monthly, operational expenses.
  • The ability to scale. Expand and Contract services as needed.
  • Rapidly adjust to new business needs
  • Services are delivered by industry leaders with huge infrastructure investments. The own and operated the capital equipment.
  • High Availability. Generally more reliable than “owned” infrastructure and constantly upgraded and improved.
  • Technical and operational expertise delivered by excellent local partners. Architecture and Advisory services specific to your business, timeframe, budget and needs. Access them as needed.
  • Decentralized spending. Departments and Line of Business experts often contract for cloud services since they best know what’s needed in their group.

The “Pay-As-You-Go” IT model strives to replace fixed expenses with variable expenses.

The infancy of this “Pay as You Go” IT model started with basic phone and tablet-based application. Now core, enterprise IT services have countless solutions. PEI, for example, can address scalable, operationally based services in:

  • Backup
  • Disaster Recovery
  • Server and CPU
  • High Availability computing
  • Office Automation applications
  • Business Applications
  • Storage
  • IT Support
  • System and User Management

If your business is still operating with the Status Quo, it makes sense to invest a little time to understand how these transformation can improve your bottom line, increase efficiency and agility, and gain a competitive advantage over competition less progressive. A recent IDC study predicts that 70% of CIO’s will pursue a “Cloud First” strategy in 2016. They may not end up with a cloud solution, but they’ll look to the cloud first.

Give us a call. We build long-term, trusted relationships with our customers through integrity, expertise and commitment.

Tim Krueger, PEI

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