Many organizations prefer to move to an OPEX-based approach to purchasing IT products and services and move away from CAPEX-based buys because of the sometimes high initial costs. Much of this influence has come from public-cloud based services which align with OPEX planning.
The good news is that a number of global providers of infrastructure offer consumption-based pricing options for those organizations who wish to avoid the initial expenditures of typical CAPEX-based purchases. Figure 1 illustrates how pay-per-use consumption models work.
My analyst colleague, Daniel Bowers, is the author of a Gartner document that provides an overview of the infrastructure providers who offer these consumption models. The document is entitled Market Guide for Consumption-Based Pricing for Data Center Infrastructure. As this document explains, consumption-based pricing is designed to:
Align infrastructure costs with usage.
Allow for scaling up and down of resource availability and cost.
Shift risk of overprovisioning to the vendor.
Shorten procurement cycles.
This market guide also provides a list of the infrastructure providers who offer pay-per-use options and identifies which types of infrastructure comes under these programs for each of the identified vendors. It is a great place to start if an I&O organization wants to move their infrastructure buys to a more OPEX-oriented purchase.