Usage-Based Pricing for Servers and Storage: An Assessment of...

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• Format: Adobe Reader PDF
• Printable: Yes. This title is printable
• Mac OS Compatible: OS 9.x or later
• Windows Compatible: Yes
• Handheld Compatible: Yes. Adobe Reader is available for PalmOS, Pocket PC, and Symbian OS.
• File Size: 175 KB
• Digital: 19 pages
• Published by: IDC October 1, 2004

Book Description


This IDC study looks at the spectrum of payment options for server and storage products that are available to IT consumers with a special focus on usage-based pricing models. Dimensions of usage-based pricing (UBP) offerings for servers and storage are identified, offerings of major suppliers are analyzed, industry best practices are identified, and implications for consumers are offered.

"Servers with usage-based pricing are most appropriate for customers with variable workloads or high growth rates who also want to maintain control of enterprise IT assets," said Vernon Turner, group vice president and general manager, Enterprise Computing, IDC. "UBP offerings are especially valuable because they reduce the risk of insufficient processing capacity while allowing the customer to choose when to activate additional processing."

"Storage systems with usage-based pricing are most appropriate for customers who expect rapid and sometimes unpredictable increases in needed capacity," said John McArthur, group vice president of Storage Hardware, European Storage Hardware, and Hardware Channels, IDC. "In addition to expediting system upgrades, UBP offerings can also improve utilization and simplify the procurement process while allowing customers to maintain control of enterprise storage assets."

"Many suppliers have not yet fully deployed pricing tactics for the indirect channels to participate in these types of engagements," said Janet Waxman, vice president, Hardware Channels and Alliances, IDC. "As the usage-based pricing model continues to evolve and gain traction within the customer base, addressing the channel issue will become a greater priority for both suppliers and those customers who elect to leverage channel partner expertise for UBP solutions."