pay-as-you-go
Generations of hardware and software acquisitions have been made using traditional capital or expense cost models that require your organization to pay large amounts of up-front fees for the use of long-term assets. In the large majority of cases the return on any investment has never been proven to be positive, and yet still we buy these critical business resources on “trust” and belief that we will garner value and benefit from them.
Software as a Service (SaaS) threatened to reduce a lot of the risk and headache as we moved to a simpler subscription model for “renting” software and application licenses. This still requires paying a regular fee for the right to use software or services that may not be fully utilized over the contracted period – e.g. a per user model charges whether the user is actively using the software or is on holiday or asleep. It is a step in the right direction, but not far enough.
One of the key business benefits to customers, and key disruptors to hardware and software selling machines is cloud computing’s base in the pay-as-you-go model, i.e. you only pay for what you use at the time you use it. Imagine being able to provide a brand new high powered server farm for the introduction of a new web based service to your market with zero capital outlay, only minutes of configuration, and per use business terms that charge you for what you consume and can be setup online in a few minutes.
Cloud computing, whether you are acquiring extended hardware resources, whole application platforms or component business services allows you to only pay for resources you use. This approach is revolutionizing the way organizations buy and measure their success from IT related purchases, impacting the vacuous and aggressive over selling techniques of traditional IT vendors and giving the market a much more transparent way to manage and monitor the commercial relationships created. The consumer is put back in charge of the value chain and decides how and where to drive in a transparent assessment of the use and value against the costs incurred.
By offering sense as a pay-as-you-go license and providing business criteria for how IT resources are allocated to high value business application in real time, sense provides the maximum business control of how IT operations dollars are used. Operating across your existing JEE servers, virtualization solutions and cloud operations transparently, sense can bring the enterprise guarantees, policies, and SLAs that you demand to your cloud based soluitons (whether private opr public).