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November 13, 2019 10:00 am
Original Link: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/r0iPIleWlDc/dell-unveils-subscription-model-to-counter-amazon-microsoft
Dell Unveils Subscription Model To Counter Amazon, Microsoft
Dell is planning to offer business clients a subscription model for products like servers and personal computers, "seeking to counter the lure of cloud services from Amazon and Microsoft," reports Bloomberg. From the report: Dell and its hardware peers have been under pressure to offer corporate clients the flexibility and simplicity of infrastructure cloud services. Public cloud titans such as Amazon Web Services and Microsoft Azure have cut demand for data-center hardware as more businesses look to rent computing power rather than invest in their own server farms. Rival Hewlett Packard Enterprise said in June that it would move to a subscription model by 2022. Research firm Gartner predicts 15% of data-center hardware deals will include pay-per-use pricing in 2022, up from 1% in 2019, Dell said. Dell is making it easier for clients to upgrade their hardware since they don't have to spend a large amount of capital expenditures upfront, but can pay a smaller amount each month that counts toward a company's operating expenditures. For the consumption programs, customers pay for the amount of storage or computing power they use. Companies can also hire Dell to completely manage their hardware infrastructure for them. While Dell's overall sales climbed 2% in the quarter that ended Aug. 2, demand for its servers and networking gear dropped 12% in a reversal from last year, when there was unprecedented customer interest in the products. Dell still expects the vast majority of customers to pay upfront for products in the next three to five years, Grocott said.Read more of this story at Slashdot.
Original Link: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/r0iPIleWlDc/dell-unveils-subscription-model-to-counter-amazon-microsoft
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