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OpEx for On-Prem Storage - Moving to a Cloud-like Consumption Based IT

The Capital Expenditure (CapEx) model, where organisations paid a hefty sum of money up-front to purchase assets, used to be the only way to pay for IT infrastructure. A common problem is that each deployment requires proper (and often long-term) planning as many decisions may be irreversible in nature.

In the area of enterprise storage, for instance, that becomes a problem because while data continues to grow exponentially, the same can’t be said about IT budgets. Companies have to try and figure out what their current needs are and predict how much space they’ll need down the road, or at least until the next IT refresh. Getting this right is crucial because it means being able to avoid overbuying or underbuying required resources and allow businesses to make significant savings.

One of the biggest revolutions that public cloud has brought to IT comes in the form of how it enables companies to only pay for the resources, services and infrastructure that they use. Among the most significant benefits of this Operational Expenditure (OpEx) model include:

  • It circumvents the need for substantial upfront payments for equipment that will not achieve a return on investment for years to come;

  • As payment is made on a monthly subscription billing basis, financial forecasts and budgeting plans are more predictable and stable; and

  • Typically, the vendor/service provider is responsible for issues such as ensuring uptime and making sure service level requirements are met because the user is only paying for the utilisation of the resources.

Now, you can enjoy the benefits of this type of consumption model for your on-prem infrastructure with IBM’s latest FlashSystem storage family. With the IBM Storage Utility offering, businesses have the flexibility to pay for storage capacity based on actual usage. This means they can move away from paying high upfront costs to more predictable quarterly charges as well as flex their monthly fees up or down.

Another advantage is that whenever additional capacity is required, just the right amount of storage can be made available without having to disrupt your data centre operations. Here’s how the Storage Utility offering works in a nutshell:

  • You commit to a flexible base subscription, typically 30% to 50% of the total storage capacity deployed (this percentage varies between organisations), over a period of 3 to 5 years.

  • The rest is billed upon usage (monthly average) based on the number of terabytes used over the base subscription. This “variable utilised capacity” may grow or shrink depending on the needs of your company.

  • The usage, status and performance of your storage systems can be monitored with a cloud-based software called IBM Storage Insights, which can also help you to accurately predict and control your future capacity needs and costs.

If you would like to learn more about how you can adopt a more flexible and cost-effective cloud-like consumption-based IT and never overbuy (or overpay) for storage again, click here.

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