As enterprises continue to look for ways to improve efficiency, reduce costs, and gain competitive advantage, many are taking a closer look at improvements that can be made to their technology stack. And what they’re finding is that the traditional paradigm is no longer serving them well. So, what’s the alternative? For many, a subscription-based approach is the most economical, logical solution. Let’s take a closer look.
Traditional Acquisition Model
Many enterprises currently use a traditional approach to acquiring data center technology, where organizations forced to predict and pay — upfront — for their growth requirements for the next 1, 3, or 5 years. As you can imagine, even your best forecasting can fall short, leaving you with technology you can’t use and capital investment that could’ve been better spent elsewhere. To effectively prepare for your future, you must buy all the technology you need today—meaning that much of the tech you purchase on day one may go unused for months or even years. Additionally, once you’ve started building your apps on a specific software/hardware stack, migrating to something new is often a painful, difficult process.
The Subscription Approach
Public cloud has changed the way organizations pay for technology – introducing the subscription and pay-as-you-go model. Many traditional technology vendors are also starting to reengineer their pricing models in a similar manner.Subscription benefits include:
- No capital outlay: The subscription model allows you to pay-as-you-go without requiring an initial capital outlay. Because there’s no massive outlay of capital on day one, businesses can more quickly get to market.
- Flexibility: Subscriptions models are typically available in month-to-month and long-term contracts. Enterprises can enjoy the preferred pricing of a long-term contract or the ultimate flexibility of a month-to-month contract; the choice is yours.
- Fixed monthly costs: Shifting costs to the operating budget often makes for better bookkeeping, and fixed monthly costs give your enterprise the ability to make informed decisions and plan ahead.
- Scale up or down as necessary: If you make a capital investment, you’re stuck with what you purchased. But subscription models provide the ability for enterprises to add—or remove— resources as needed. In a subscription model, your solution is built to scale with your business’ growth—and unlike traditional solutions, if your business needs to scale down, your costs will also go down.
- IT experts: Because your vendor handles your infrastructure’s underlying technology and R&D, a subscription model means your enterprise doesn’t have the burden of assigning IT staff to constantly monitor and improve your setup. You can free up the time and money you’d spend on an IT team to go towards marketing, sales or any other area of your business.
The Kaminario Subscription Difference
Kaminario’s subscription service builds on all of the existing benefits of the subscription model and then goes further. Specifically:
- Less inventory, lower costs: Competing private cloud solution providers offer enterprises a bundled hardware/software solution. However, Kaminario delivers everything via our software layer, making us a true SaaS solution. We realize that buying and holding hardware is expensive and that purchasing massive amounts of inventory requires extremely high margins, making it a less-than-ideal investment for many businesses. Kaminario’s software stack runs on cost effective, certified, off-the-shelf hardware See how one company leveraged Kaminario’s subscription model to decrease their cost per GB by 45%.
- Flexible pricing model: Not only can enterprises scale usage up or down, but Kaminario also offers flexibility in the way we price our offerings. Both long-term and month-to-month subscriptions are available in both CAPEX and OPEX models. Additionally, if you need to add a completely new data center, you can do so for just the cost of the hardware. Find out how converting to a Kaminario subscription license decreased one company’s cost per GB by 46% while easily allocating their subscription pool to data centers as needed.
- Transferability: Once you subscribe at a certain level, you can use your licenses across all of your data centers without restriction. If you consolidate data centers, your Kaminario subscription stays at the same level, intact. Your subscription is fully transferable and available to be used with any certified hardware stack. Learn how one customer decreased their cost per GB by 37% while simultaneously decreasing warehouse report production time by 73%.
The Many Advantages of a Subscription Approach
Certainly, a subscription-based approach to acquiring your data center technology is an attractive solution, thanks to its flexibility, scalability, predictability, lower capital outlay, and ease-of-maintenance. But a Kaminario subscription offers extended benefits including a software-only solution that helps you decrease costs and easily move capacity where needed while offering the ultimate in pricing flexibility. Click here for more information on Kaminario’s acquisition options.