When did you last set foot inside a Blockbuster’s? Can’t remember? Not really surprising. After all, Blockbuster just couldn’t keep up with the changing way we consume media. Why bother trekking down to Blockbuster when you could spend a tiny monthly fee on Netflix and get all the movies and TV you want? It’s easier, faster, and less expensive. Netflix provides so much more than Blockbuster while saving on the cost of storefronts, distribution, and HR. It’s simple. Why WOULDN’T you choose Netflix over Blockbuster? IT is going the same direction. The future of technology is the subscription model. Take a look at Microsoft. What business doesn’t rely on MS Office to get work done? Most companies use Outlook, Word, and Excel every day. It used to be that you’d have to buy a physical license for MS Office, install it on every workstation or on your server, and worry about patching it every time an update came out. Microsoft saw the direction of the future and decided to embrace it. That’s why they came out with Office 365. Now you can get everything you want from an Office suite plus all the power of an Exchange server, without the bloat and expense of licensing or maintaining a server. Instead, you pay a monthly fee for the exact number of users you want access for, and simply go online to use all your applications: email, calendars, contacts, Word, Excel… it’s all there. Ultimately, smaller companies that could never have afforded to outright purchase and maintain an Exchange server or worry about getting the newest version of Office are now able to compete using the best Microsoft systems out there. And they save money doing it. Other IT services are already being offered on subscription bases too. Virus protection is easily applied with a monthly service plan, as is spam protection. Lots of applications are now being offered in the cloud that you can sign up for, only for as long as you need them. Right now, Kyocera Intelligence is already providing hardware on a subscription basis for our clients: Instead of spending a lot of money upfront on computers and servers that require regular maintenance and management, our clients are able to simply pay a monthly fee for their needed hardware from us. They get the exact equipment they need, we handle all the licensing, warranties, and servicing, and we replace the equipment before it becomes obsolete. There are lots of benefits to converting to a subscription model for IT:
- Turn capital expenses into operational expenses: When you receive IT services or equipment on a subscription basis, you convert that expense into predictable operating expenses that are easy to budget for every month. Plus, you can claim those expenses on your taxes to receive some nice rewards.
- Avoid collecting expensive and clunky hardware: Think of that computer you’re working on right now. How useful is it going to be in two years’ time? It will slow down and start dragging down productivity. If you own it outright, you’re just going to have to put in the backroom to gather dust, or otherwise recycle it. But if you’re on a monthly subscription for hardware from your IT company, they’ll replace it at no extra cost before it goes obsolete.
- Easy scalability: Imagine getting HBO online without having to buy the entire cable package. That’s the great thing about subscription model technology. You scale your subscription to your EXACT needs: It’s a pick-what-you-want model with virtual desktops, customizable number of users, and more. You pay only for what you need without any bloat, and you can change your service as you grow.