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Momentum of EverFlex
The interest and acceptance of EverFlex has been dramatically growing since its introduction on April 21, 2020. The appeal of the simple, elastic, and comprehensive approach to acquiring technology has been on the rise for two reasons.
First, there is the recognition that converting some projects to pay per use can significantly reduce the cost of IT infrastructure – especially where utilization rates are expected to be low due to variability in resources needed or an inability to accurately forecast how much is needed. When IT has faced this dilemma in the past, they were often forced to buy more than they needed – just in case. EverFlex address this with EverFlex Consumption, but also goes well beyond simple asset savings. The managed services component of the EverFlex Utility model and EverFlex ‘as a Service’ helps organizations reduce operational costs as well. These cost savings are often greater than the asset costs saving.
Second, there is a significant rise in the due diligence done for every project acquisition to determine if it should convert to pay per use. Even when an organization ultimately concludes that purchase or lease is the best approach for a given project, they are often reluctant to make that decision without checking the numbers. The implication is that organizations are looking for more than pay per use – they are looking for a trusted advisor that can guide them on the best approach for each project.
Why evaluate pay per use for each project acquisition? Like evaluating between purchase or lease, there are several, company specific factors that go into the analysis. Things like cash flow status and the need to fund R&D don’t change that much within a company so there is little need to reevaluate that decision for every acquisition. But unlike purchase or lease decisions, a pay per use decision is generally driven by project situational factors – will high utilization rates be difficult to achieve? Is a highly proficient staff in place for operations? A different conclusion might be found for acquiring added resources to a well-established ERP deployment compared to building out resources for a new application or a new remote datacenter.
At Hitachi Vantara, pay per use and EverFlex Consumption has become part of a standard conversation we have. Most projects continue to transact through purchase or lease, but EverFlex Consumption is growing rapidly. We have a strong, growing global pipeline for EverFlex Consumption transactions and our bookings have been off to a fast start this year. EverFlex has proven to be a big hit with existing customers and new customers alike, and most going beyond simply reducing asset costs by leveraging managed services to reduce operational costs as well.
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