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Consumption-Based Computing Model

Microsoft Azure Blog Series

For several decades, the traditional IT model was based on capital expenses for direct equipment purchases and expense associated with operating and maintaining them. This model required organizations to purchase the asset up front, deploy it on-premise, and keep up with the maintenance of it over time. This model is coming to an expiration date due to the rapid changes in technology and consumer demands is deeming it pricey and inefficient. The new IT model is in the form of consumption-based computing.

Consumption-based computing

New IT consumption models are gaining ground by allowing businesses to pay for usage when and as they need it. This can lead to a reduction or even elimination of capital expenses and maintenance and upgrade costs, causing many businesses to transition away from the traditional model towards a consumption based computing model. Consumption-based computing delivers organizations with the exact amount of hardware, software, and support, when and as needed. Gone are the days of paying a higher single price point for an expansive product that you might only use pieces of.

In today’s technology world, there is a menu of software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS) options, and businesses are free to mix and match per their needs. IT consumption models can free up budgets and increase investment opportunities by offering the flexibility and efficiency businesses need to grow and compete, but only if applied correctly and monitored regularly.  if your company needs computing power, you don’t invest in a new data center. Instead this model allows you to simply pick and choose what features and horsepower you need for your virtual machine from your service provider. It’s the same for software. Start with a basic license and add more features when you need them; don’t go out and buy software, instead subscribe to it.

It’s imperative to keep IT budgets in mind when choosing a cloud provider, which is why the Microsoft Azure platform is so attractive to many organizations. Microsoft Azure makes it easy to scale compute power up or down with nothing more than the click of a button. Azure’s pay-as-you-go pricing allows SMBs to better manage their IT budgets, by allowing them to just purchase what they need.  Additionally, the cloud environment allows businesses to launch both customer applications and internal apps in the cloud, which saves on infrastructure costs, reduces hardware, and lessens the maintenance burden on in-house IT management. 2W Tech is a Level I Microsoft Cloud Solutions Partner and would be happy to help your organization understand Microsoft Azure. Let the benefits of consumption-based computing work for you.

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