What is the smartest way to buy technology – transactional or contractual?
26 July 2016
2 min read
Subscriptions. You have one for TV and movies. You have one for your mobile phone. You could get beauty products delivered once a month, or a new outfit. You might even get one for your dog (because man’s best friend deserves monthly treats and surprises too).
So if we welcome subscriptions in every other area of our lives, then why should our businesses be any different? Subscriptions could alleviate the biggest IT problems facing businesses. Cloud-based subscription models have already revolutionised how businesses interact with software, with Software-as-a-Service (SaaS) providing affordable access to essential business services. For example, marketing automation packages from Salesforce , Microsoft Office, Adobe, Marketo and Oracle are all SaaS and scale right down to options for small businesses. Intrigued?
Why a subscription economy makes sense
By 2020 more than 80% of software vendors will embrace subscriptions instead of license and maintenance options. “Customers have moved from buying or leasing technology, to buying IT services, to ‘buying’ long-term relationships with providers,” said Laurie Wurster, research director at Gartner, “a hybrid cloud/on-premises model is rapidly becoming enterprises’ deployment model of choice, and most software providers are becoming businesses that deploy using a cloud model.”
Despite this, small businesses can sometimes feel like they’re at a disadvantage when it comes to keeping up to date with tech and getting hold of the best hardware. SaaS models and subscription over license fees are already giving small businesses access to affordable IT solutions. Without the large budgets and bargaining power of big business, staying competitive and up to date can feel difficult.
A subscription service can help. Instead of living and working with outdated, productivity-killing technology, businesses can gain access to the latest devices and versions of software – all without the upfront capital cost. You can control your cash flow – minimising outgoings and controlling everything through a single, transparent monthly fee.
The everyday running of your IT department will become streamlined too. When you get devices, software and support all from the same place, it becomes easier than ever to manage and control exactly how your business runs.
The main drivers for subscriptions:
- The usage-based subscription models in the cloud are set up so providers are more easily able to provide packages that match business needs, such as pay-as-you-go and concurrent licenses.
- Subscription models make it easier to give each team member the specific hardware and software they need, and ensure everyone is using the same versions.
- Subscriptions are based on a transparent regular fee. Instead of dealing with random hits to your finances when repairs or upgrades are required, the scheduled costs give businesses more visibility, control over IT costs and a better ROI.
The industry is changing – and the trend of X-as-a-Service (XaaS) gives the power to the people. To discover more about HP Subscriptions click here.