The IT services you use in your business can be the key to running a smooth and efficient operation. While there are various ways that an IT company can charge for services, one of the most common is consumption-based. If you aren’t familiar with or currently using consumption-based IT services, now may be the time to start considering it. This newly emerging pricing strategy may be the future of IT.
1. What is Consumption-Based IT Services?
Consumption-based services are a pricing model that charges clients based on the IT services they need. You may already be familiar with this pricing model in your water or utility bills; in short, you get charged for what you use. A provider will charge one flat rate for all services for every time you use the resources, or there may be varying rates for each service.
2. Why is the Landscape Changing?
This new model is becoming increasingly popular with IT service providers. We all know the importance of staying on top of the trends in this fast-moving world. Since businesses of all sectors are moving faster and trying to become more efficient, the needs of specific companies are becoming increasingly more individualized. A consumption-based pricing model is more appealing these days because companies are able to pick and choose the services they need and are no longer being forced to pay for resources they don’t want.
3. What Can I Gain from Consumption-Based Services?
By tailoring your IT services to the specific needs of your company, you will notice several beneficial changes within your business. You’ll be able to simplify operations, only focusing on your tasks at hand. One of the most significant benefits to a consumption-based service is that you only pay for what you need. This switch can save your company a considerable amount of money without sacrificing the services you need.
Perhaps the main reason businesses are switching to consumption-based IT services is to improve efficiency. IT services are changing all the time based on the current trends, and companies need to be able to keep up. Consumption-based pricing makes it easier to determine what is going to benefit your company the most. You will also be able to take a closer look at your operations and see where you can combine existing resources to save time, money, and energy.
4. Consumption-Based Services and the Cloud
You may already be using the cloud for data maintenance in your business, and consumption-based services can go hand in hand with your established practices. When you have your cloud services, and IT services separate, you may run a higher risk of data breaches and control issues. However, by moving away from a public cloud and instead combining your private cloud with your consumption-based IT services, everything will be handled internally. This results in a much more secure environment that is less likely to be breached, as well as quicker operations in general and more speed and storage to handle all of your projects.
5. Simplicity with Consumption-Based Services
It’s infinitely easier to manage a business with fewer things on your plate. With everything you may receive in a traditional IT pricing model, it can be hard to determine if you’re getting your money’s worth. A consumption-based model allows you to pick and choose your services, and in turn, simplify your IT costs. From there, you’ll be able to invest that money into other areas of your business and have a more predictable budget overall. You may even be able to reduce or eliminate your costs of capital expenses.
6. Something to Consider
There are a few factors to consider when thinking about moving to a consumption-based IT model. Since you can pick and choose your services, you will need to revisit your plan every so often to determine if the resources you’re paying for are still working for you. This will enable you to add or eliminate services as you see fit. However, you need to ensure you have the time to review regularly, or you may not be getting the best value for your money.
Consumption-based IT services are appealing to businesses more and more in our world today, as they present a customizable way to secure the resources needed. If you’re considering switching to a consumption-based pricing model, be sure to do your research. Decide what services you truly need and which you can do away with, and choose the IT service that will best align with your company's goals.