CFOs are saving millions by moving to consumption-based IT models

Glass Building

Flexible consumption-based IT models offer organisations a smart way to access new technology on a pay-per-use basis. By transitioning to a consumption-based model, organisations are saving millions in IT costs and experiencing ongoing YOY savings. Furthermore, transparent rates and pay-per-use pricing makes forecasting future IT expenditure easier and moves IT from a cost centre to a business enabler.

Consumption-based models are not a new concept. Telecoms and utility companies have been adding value for their customers for years by offering flexible consumption options. Today, business and technology trends are driving the demand for consumption-based IT models that offer the same flexibility and affordability.

The Business Case For Flexible Technology Consumption

Pay-per-use models offer transparent pricing and also give you the freedom to scale up and pace your transition at a rate that suits business demand. The rise of cloud computing has made consumption-based IT more accessible than ever and has led to organisations reviewing how their resources and financials can be managed more effectively. Having access to consumption information in real-time can dramatically improve the accuracy of costing models and move IT costs into more predictable territory.

Organisations exploring the move away from traditional IT models to a consumption-based alternative need to be mindful of the cost implications and business decisions involved before they can move forward.

However, transitioning to a more versatile and transparent model can be a complex and challenging process. Organisations exploring the move away from traditional IT models to a consumption-based alternative need to be mindful of the cost implications and business decisions involved before they can move forward.

Legacy Applications: The Perfect Candidate For Pay-Per-Use Modernisation

Legacy applications represent one of the biggest business limiters for an organisation. The cost of maintaining an ageing and fragile infrastructure continues to increase, putting the strain on IT budgets and preventing future innovation. These applications are the perfect candidate for pay-per-use modernisation, but you need to find a solid business case for doing so.

Where to allocate IT budget can be a constant tug of war. Digital transformation often requires hard costs and upfront investment. Even most pay-per-use solutions require significant capital expenditure before their benefits become apparent. What is required is a solution that takes the cost and risk out of digital transformation, and which allows you to innovate without new investment.

How Much You Could Save By Transitioning?

DXC  offers true flexible consumption with its COMPaaS model, in a way that is easy to access, easy to understand and most importantly, easy to pay for. When you migrate to the COMPaaS consumption-based IT model, you instantly transform capital expenditure into operating costs, and only start paying for our services from the moment you start to see the benefits of your migration.

No matter where you are in your digital journey, moving from a traditional IT model to a model that offers flexible consumption will help you to deliver new value, access new markets and save millions YoY in legacy maintenance costs.

Mike Revitt was the global head of Managed Platform as a Service at DXC Technology, with an emphasis on our Oracle partnership.


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  1. Khaled Soubani says:

    In addition to the savings, there is an added advantage to cloud computing that could have saved a company from financial ruin. Companies that are incapable of constructing solid IT operations for economic reasons can protect their clients and their financial well being by moving their IT operations to the cloud, where the guidelines and the technology are more capable of dealing with cyber threats.

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