Applying the Principles of The On-Demand Economy to Technology Consumption

A peek into how Dell Technologies is helping customers win with innovative everything-as-a-service offerings

It is undeniable that we live in exciting times. We are in an economy where we strive to own less, share more, and only pay for what we use. This minimalist movement is called the on-demand economy. Why is this economy trend so ubiquitous, and what is its relevance to technology? Imagine consuming technology like you would an Airbnb package, a ride-share service, or a fitness app.

The underlying principles of the on-demand economy are flexibility, heavy reliance on technology, and customization to suit each business and its users. By 2020, 40% of IT infrastructure hardware and software purchases will be based on subscription OpEx models (consumption models), public cloud, 3rd party private cloud, subscription-based on-premises infrastructure SW and HW provided on a pay-as-you-go basis, according to IDC.[1]

At Dell Technologies, it’s in our DNA to democratize technology. We were applying the tenets of the sharing economy long before it existed! You may be familiar with leasing and financing to preserve cash, but there’s more to financing than that. Some of the largest, most cash-rich customers choose to finance their technology with Dell’s Financial Services organization (DFS) because they know about the exponential value our solutions deliver.

Established in 1997, DFS delivers value at every step of the customer experience. The solutions ease budget constraints, increase operational efficiency, simplify budgeting and payments, and accelerate ROI and Innovation. We enable our customers to thrive in a multi-cloud environment and harness the power of infrastructure and applications alike. Our consumption models have the most expansive channel coverage and choice of leveraging services through Dell Technologies services or DFS. Our services are customizable to the customers’ workloads, use- cases, and utilization scenarios.

Voted the best Finance/Support service provider of the year by ITEuropa, our everything-as-a-service model and solutions solve business-critical problems by:

  • Making pricing predictable: PCaaS combines hardware, software, lifecycle services, and financing into a predictable price per seat per month
  • Lowering the cost of computing: Fair Market Value Lease encourages regular technology upgrades and reduces the total cost of computing
  • Managing cash flow by spreading payments over time through Financial Lease, Loan, and Dell Business Credit*
  • Delivering the flexibility to pay as you use and need technology with Pay-as-you-grow models, Flex on Demand and Data Center Utility solutions
  • Financing software, including service & maintenance: with our Transformational License Agreement (TLA) and Flexible Software Payments we make acquiring and managing software more flexible.

Our thoughtfully designed services have a positive impact on minority communities, partner ecosystem, and entrepreneurs through:

  • Minority financing partnerships* – For customers seeking a Minority Business Enterprise (MBE) or Historically Underutilized Business (HUB) lessor, DFS can help facilitate financing through a strategic relationship with Pharos Financial Services, L.P. Minority financing programs improve the economic conditions of communities and allow companies to develop a more diverse supplier network.
  • Channel partners programs – DFS solutions are available through channel partners. Partners that use DFS grow twice as fast as those who don’t.
  • Dell Technologies Capital and SMB initiatives – DFS helps the portfolio of companies in DTC and Small and Medium Businesses by simplifying how they do business with their customers and ensuring steady cash flow.
  • A sustainable approach to asset disposition: DFS resells the vast majority of equipment returned at end-of-lease. For obsolete equipment, DFS works with a partner to dispose of the equipment in an environmentally conscious manner that meets Dell compliance standards.

Today, businesses are trying to make the most out of emerging technologies like IoT, 5G, AI/ML, and others. To them, everything-as-a-service (XaaS) is a strategic and operational blueprint. Deloitte Insight says that within the next 18–24 months, XaaS will likely begin disrupting business and operational models, and redefining the fundamental goals of digital transformation.

To surmount the odds in this journey choose a reliable partner. A partner who shares your vision, is a market leader, and has a multi-vendor approach to doing business.

[1] IDC Futurescape: WW DC 2018 Predictions Nov 2017 Doc#US43152417

*Solutions are available only in the US.

Bill Wavro

About the Author: Bill Wavro

Bill Wavro joined Dell in 2005 and is currently President, Dell Financial Services. Prior to that he served as the CFO of the Global Commercial Business segment. His first role at Dell was Vice President of Product Group Finance where he provided financial support to Dell’s R&D, product marketing, and operations organizations. After graduating from The University of Texas with a degree in Accounting, Bill started his career with Price Waterhouse Coopers in September of 1985. He planned and executed worldwide external and internal audit plans for Fortune 500 clients in a variety of industries with an emphasis in Technology. Bill also spent 4 years in Europe with PwC servicing the needs of international clients on US GAAP accounting, statutory reporting, and international tax planning along with audit and consulting services. Bill joined Compaq in 1997 as a controller to help start up and lead Compaq Financial services to what would eventually become a $2B Financial Services and leasing organization. Through a progression of finance roles within Compaq and then HP, he took over the role as CFO of the Personal Systems division of HP in 2003 before joining Dell in 2005. Bill was born in Tallahassee, Florida and grew up in Houston, Texas. He graduated from the University of Texas at Austin and is a Certified Public Accountant. Bill is currently based in Austin, Texas and enjoys travel, wine, and the outdoors.