Channel partner programs, Data centers, Enterprise, Storage

Dell EMC Offers Cloud-Like Pay-As-You-Go Model for Enterprise Storage, HCI

Dell Technologies is rolling out a “flexible consumption” model for several of its products and services. The cloud-like payment model means customers can scale technology up or down with changing business demands and roll out new technologies incrementally without large upfront capital costs, the company said.

Dell announced flexible consumption plans for its storage solutions, hyper-converged infrastructure (HCI) products, PC hardware and software, and license agreements this week at Dell EMC World 2017. The company is also building the flexible consumption model into its Partner Program rebate system, meaning MSPs and resellers can earn additional rebates as customer technology consumption increases.

Howard Elias, president of Dell EMC Services and IT, said in a statement the flexible and predictable payment options help organizations adopt the technology that best suits their needs in a more modern, pay-as-you go fashion.

“Many IT leaders worry about unforeseen costs and risks when adopting new or different technologies, but organizations that do not invest in IT transformation initiatives risk falling behind their competitors,” he said.

The flexible payment options will be offered through Dell Financial Services (DFS). Dell is calling the pay-as-you-go model a company-wide approach to IT, so additional products and services are likely to be included down the road.

DFS on Demand

Initially available for Dell EMC storage solutions, Flex on Demand allows customers to pay only for the storage capacity they need, the company said. It also offers instant access to additional buffer capacity during spikes with an adjusted payment to match.

Dell said Flex on Demand offers a low-capacity commitment and a flexible payment period so customers pay only for what is consumed.

Similarly, HCI customers can opt for a cloud-like consumption model with predictable monthly payments, built-in price reductions over time and no upfront costs.

Cloud Flex for HCI will initially be available for Dell EMC VxRail Appliances and the Dell EMC XC Series.

Additional Pay-As-You-Go Offerings

Dell also announced that it is rolling out:

  • PC as a Service (PCaaS) - Combines PC hardware, software, and services for deployment, management, security and support into a per-seat monthly cost
  • VDI Complete Solutions - Combines infrastructure, software and services from a single vendor in a VMWare Horizon-powered solution; customers can buy pre-configured VDI or build their own
  • Dell Technologies TLA - A software licensing and maintenance agreement allowing customers to swap un-deployed software and freely exchange software

Dell: Serious About 'As a Service'?

Like many hardware companies, Dell remains heavily dependent on traditional hardware sales rather than recurring revenues. The company killed its cloud alternative to Amazon Web Services and Microsoft Azure back in 2013. But during last year's Dell EMC World, Michael Dell hinted that more as-a-service offerings were on the way. Much of the focus, he said at the time, involved Dell's financing team and associate programs:

Video link

More recently, Dell Channel Chief John Byrne explained the company's overall channel partner program in this recent podcast with ChannelE2E and CompTIA.

Additional insights from Joe Panettieri.