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Dell, HPE, Lenovo pivot to data center hardware as a service - Business Insider

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Here's how vendors like HPE, Dell, and Lenovo are trying to change their data center businesses to keep up with the rise of cloud computing by allowing customers to rent hardware and pay only for how much they use it

A shift away from the traditional pricing model, and towards paying-as-you-goThe first was the advent of the cloud and the need to offer greater competitiveness in buying options. The big hardware vendors found themselves losing sales as enterprises increasingly moved to the cloud and stopped buying hardware.

"They want to be able to compete against the cloud and against [the cloud] model, but they also wanted to offer an Opex model. This was the only true way they could do it," Rob Brothers, program vice president for data center and support services at analyst firm IDC, told Business Insider.The choice between buying the hardware you need and leasing it all depends on how you want to run your books, said Brothers. "There really isn't anyone who wouldn't like it.

But one of the elements of the leasing programs is the vendors actually over-provision for the customer's needs. The hardware sits unused, and thus no charges incurred, until it is provisioned and needed. "Because we're constantly monitoring the environment, we can update the hardware to make sure they have the latest and greatest and update hardware to what they need," said White. "We're not going to swap out everyone's hardware but it would depend on what the customer is doing." For Swiss robotics giant ABB, combining HPE GreenLake with its robotics business has meant it can better and more quickly serve the European automotive industry.

 

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