Demand for pay-per-use Information Technology models increases

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The pay-per-use subscription models to access affordable Information Technology services increases post-lockdown as a need for businesses to strengthen the technology backbone rises.

Technology companies seek to target small businesses and medium businesses over the past couple of years, hence, the companies have been mobilizing opex-first models rather than capex-heavy technology offerings. The wastage of resources that are purchased is prevented by using the pay-as-you-go model.

The demand for the pay-per-use has increased as the businesses seek to go digital as the economy unlocks. Pay-per-use is a widely accepted model in the technology industry especially across Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). The businesses have to pay only for specific services that they have procured and deployed in their operations by paying a monthly or an annual subscription. This ensures that the resources are not wasted.

Around 44% of the global applications are still on-premise and around 95% of the organizations intend to increase their spending on cloud in the next 12 months. This traction is expected to be primarily driven by Software as a Service (SaaS) applications on the cloud with pay-per-use models. Virtual desktop solutions, Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), helpdesks, and collaborative platforms are some of the popular solutions while moving forward to pay-per-use models.

According to Mr. Puneet Gupta, who is the MD of NetApp India Marketing and Services, the pay-as-you-go model offers scalability for small businesses to meet the increasing and volatile business demands. The Small and Medium Business (SMB) customers can scale on-demand without purchasing additional resources that are not required. The cloud technology is a great opex model method to scale infrastructure.

Small businesses are looking for ways to join the cloud system while managing their financial constraints and not compromising on quality and security. Businesses seek to work around their manpower challenges as they start business post lockdown, hence Robotic Process Automation has witnessed huge traction in the pay-per-use services. Companies that are born on the cloud, start-up, and small-scale organizations usually opt for a cloud-first strategy that reduces their internal systems modernization costs.

The pay-per-ticket model in the support services side is trending where organizations prefer to pay for the tickets raised rather than fixed cost for getting support services, and its demand is set to increase as the organizations look forward to a reduction in their capital expenditure to keep costs under control.

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