“Whoever holds the subscription (as a service) holds the key to growth.” These words of wisdom from Andy Martin, Pure’s vice president of global partner sales, hit the target in terms of the benefits of recurring revenue business models, also known as subscription models.
When businesses offer products and services via subscription models, they cushion the ups and downs of forecasting, purchasing, and migrations that can damage revenue and growth. “Having a subscription product or service that customers will reload, renew, or reorder repeatedly can smooth intermittent cash flow and keep a business alive,” reports Harvard Business Review. Stable, ongoing revenue was likely a godsend for many businesses during the past year of economic uncertainty. It will likely continue to be welcome in the post-pandemic economy.
With recurring revenue to stabilize cash flow, businesses are in a strong position to look hard at subscriptions for their own needs. As-a-service models can keep businesses agile enough to navigate new market trends, avoid new risks, and manage price volatility and supply interruptions.
If subscription products and services appeal to buyers, why not use the subscription approach to make your own processes and operations more efficient?
Why Adopt Storage as a Service?
If you want to bring the benefits of subscription and as-a-service models to your company, consider starting with data management, and in particular, data storage. It’s more than a financial model—it’s a total service model where operations are managed by a provider.
There are several other clear-cut business benefits to storage as a service (STaaS):
- Data storage will vary over time. Storage can be dependent on launches of new products and services. If storage is variable, businesses don’t need to pay for the maximum amount and risk waste or overspend. As traditional applications move to the cloud storage types are changing as well, so long term investments in storage infrastructure can easily become inflexible.
- Forecasting is time-consuming guesswork. If businesses buy data storage as a service, decision-makers don’t need to make predictions about what they might need and when (and suffer the consequences when their guesses are off by a wide margin). They can simply pay for the data storage they use—no more and no less.
- Storage as a service is regular and reliable. Storage-as-a-service providers have strict SLAs for storage availability and capacity. These SLAs align with businesses’ own SLAs and often include allowances for overage buffers to ensure continuity. In fact, 81% of executives believe StaaS provides improved consistency for on-premises and cloud-based applications.
Real-Life STaaS Results
How are Pure customers tapping into Pure as-a-Service™ to gain agility and manage costs?
TeraGo: Eliminating Capital Costs, Passing on Savings to Customers
TeraGo provides networking and cloud services for businesses across Canada and has to deliver seamless reliability, performance, and scalability for its customers. To that end, the company used to keep extra disk capacity around for unexpected growth since it couldn’t afford to let performance falter. But that meant absorbing the cost of unused data storage resources.
It was time for TeraGo to jettison the high-cost, high-maintenance storage for something with lower costs and fewer headaches. As Duncan McGregor, TeraGo’s VP of engineering and operations says, “We provide exceptional, high-touch support in everything we do so that customers don’t have to worry about a thing.” With that mission in mind, TeraGo decided not to worry about storage again, choosing Pure Storage® FlashArray™ delivered via Pure as-a-Service.
TeraGo wanted to experience the agility and cost-savings that it promised its own customers. So, did it work? From a financial point of view, the company was able to eliminate the big capital costs that come with on-premise data storage, and pay only for the data storage used. That was one headache cured.
Then, on top of cutting its own costs, TeraGo was able to use those savings to create a simpler and more competitive pricing model for its own customers. This is a perfect example of the recurring revenue model putting a business in a better position to wow its customers. Learn how businesses can save more on cloud storage with TeraGo.
Dizzion: Scaling without Interruption
Dizzion, a pioneer in managed desktop as a service, was already using Pure all-flash storage arrays back in 2017. In March 2020, when remote work took off around the world, demand for Dizzion went through the roof. By that summer, requests for Dizzion solutions tripled. The company’s performance and availability had to be top-notch if it was going to serve customers that were struggling to meet remote-work requirements.
By choosing Pure as-a-Service, Dizzion got out ahead of the demand for its product. The company was able to efficiently manage costs for spikes in data while creating a pool of all-flash data storage resources, ready wherever they needed them. And with pay-as-you-go storage, Dizzion could scale to customers’ remote-work needs, while minimizing the chances that the company would end up with data-storage inventory bloat.
A Future Where Every Business Is Competitive and Cloud-Ready
Those that have embraced as-a-service models see business benefits such as reducing CAPEX expenses and hardware maintenance. According to a recent survey from Bredin and Pure, 41% of IT decision-makers said they plan to transition to buying IT equipment via utility consumption models in 2021. And a survey by Harvard Business Review reveals that 40% of surveyed organizations expect to reduce their reliance on on-premises infrastructure by moving to service-provider or cloud solutions.
As our own Andrew Miller noted in a recent Pure//Accelerate™ session, “Why run the risk of outgrowing the infrastructure that you paid for and trying to squeeze every last penny out of it, when you know it’s not supporting your business? Instead, from a data storage standpoint, you’re much better off embracing a fully modern platform that propels you forward.”