What is Consumption-Based IT?

We live in a dynamic digital era prone to technological advancements that impact nearly every industry. For modern businesses, this new reality requires constant adaptation and agile-infrastructure updates in order to keep pace with growing business demand.

But while most businesses appreciate the importance of investing in new tools and technologies, many are finding the cost of integration and maintenance for on-premise IT solutions is more than they bargained for. Today’s enterprises face many challenges when deploying in-house IT models, including lengthy, complex hardware and software deployments, system inaccessibility, and low user-adoption rates. Unfortunately, these pain points are often also associated with significant infrastructure development costs that impact the bottom line and significantly increase total cost of ownership.

So how do modern businesses control costs while supporting the need for scalability? The answer is a consumption-based IT model.

How to Manage Your On-Premise Infrastructure Costs with Consumption-Based IT

A consumption-based IT model refers to the use of IT products or services that are billed according to their usage. Also known as an “as-a-service” model, consumption-based IT contrasts with subscription-based models that charge a fixed rate, regardless of usage.

In many cases, businesses may decide to task in-house IT teams with on-premises setups and integrations. Consumption-based IT gives organizations the flexibility to establish cost-effective, scalable networking systems, backup and storage devices, ERP solutions, and cybersecurity tools without overpaying for software and services they don’t need. Managing these solutions in-house can be beneficial when configuring quick deployments customized to the needs of the business. Further, a sustainable cost structure when deploying new services helps companies maintain profitability while ensuring they meet compliance and data security standards.

One significant downside to on-premises IT development is its deployment cost. Enterprise hardware and software often require significant upfront investments in technology and licensing tiers the company will eventually “grow into.” It can take years for organizations to see positive returns. Another pain point is the workforce experience required to drive seamless public and private cloud deployments while still managing other mission-critical aspects of the business. Often, this leads to businesses accruing unused technology tools and solutions (aka: “shelfware”), as well as getting locking into paying for subscription cloud services that are underutilized, poorly formatted, or unscalable.

Advantages of Consumption-Based IT

Consumption-based IT is different in that it’s designed to provide economic elasticity while supporting a much more efficient way to manage organizational growth and sustainability. Pay-per-use IT models give organizations the ability to scale their infrastructures up or down, at a rate that suits their business needs. This flexibility not only helps businesses pivot quickly when adopting new services and solutions, but it also gives them the ability to blend their current legacy systems with newer, more innovative technologies, all without overspending or overprovisioning.

Consumption-based IT also greatly supports an organization’s need to remain agile while still maintaining adequate control over compliance, performance, and security. By utilizing customized IT solutions that blend public, private, and hybrid cloud services and integrations, organizations can benefit from increased efficiencies and operational improvements while ensuring business continuity at all levels.

Consumption-based IT models are the lifeblood of any successful digital transformation strategy. By offering a flexible, cost-effective way for businesses to develop their infrastructures, consumption-based IT gives organizations a customized solution for better growth and sustainability.

As a leading consultancy and reseller, Anexinet’s strategies, services, and solutions have helped countless clients achieve technology-enabled business transformation. Anexinet takes a holistic approach when helping organizations develop their on-premises and cloud-based infrastructures. For more information on how Axexinet can help you adopt a consumption-based IT solution, please reach out to us today.