IT Subscription Agreements - Zunesis

Please Subscribe

Credit and Leasing

 

In today’s world, you rarely, if ever find someone who does not have a payment schedule for something they couldn’t or didn’t want to buy outright. Between phones, cars, houses, and credit cards, most of us have something that we put on credit. The concept of credit is not new, and it has had many different faces and reputations over the years.

 

In fact, I find it somewhat assuming that as a society we depend on credit.  Yet in general our concept of credit is one of disdain. Or we use it just because we have to, not because we want to.

 

Leasing options in the IT industry have been met with similar attitudes. In fact, there are some companies and agencies that will make a hard and fast rule that you CAN’T lease.

 

But what if things were different?

 

What if there was a way to purchase the technology you need, pay for it on a yearly basis as your budget becomes available and still not sign a lease?

 

Subscriptions or subscription agreements have been around as long as credit/leasing have. With the rise of software and cloud computing, subscriptions have become more and more prevalent in our IT world.

 

 

 

So the brain trust here at Zunesis thought this through, and we said to ourselves:

 

“What if we could provide a subscription agreement for on premises hardware and remove the stigma of a lease from our customers minds?”

What would this look like?

 

Customer Challenges

 

First, we wanted to come up with a list of challenges our customers are facing. Here is what we found:

 

  • Traditional storage infrastructures have hard limits on capacity and data growth is unpredictable.
  • Traditional infrastructure refresh cycles are typically every 2.5 – 5 years, and these refresh cycles require extensive planning and time-consuming data migrations.
  • The rate of data growth today is unprecedented.  This growth is being driven by analytics, machine learning, artificial intelligence, video, and edge-based Internet of Things (IoT) applications.
  • Capital costs continue to rise on enterprise storage because of demands for faster I/O, greater redundancy, and enhanced security.  Finding cost-effective ways to provision storage is a major challenge for most organizations today.

 

So after some careful thought, we realized that we would need a procurement model that allowed our customer to purchase all the infrastructure necessary for a complete data center refresh. It needed to be sufficient enough to support current operations and five-years of planned growth.

 

Subscription Agreement

 

To make that happen, Zunesis teamed up with Hewlett Packard Financial Services to create a SLED/Nevada compliant agreement that would allow our customer to make cost-effective annual payments for managed infrastructure.

 

We would set this up as a subscription agreement, providing the following benefits:

 

  • An annual cost that is consistent year over year.  No surprises.
  • Proactive support from vendors is included, off-loading administrative overhead of updates, migrations, and end-of-life transitions.
  • The Subscription Agreement allows for rapid and unpredictable storage / infrastructure growth.
  • The Agreement enables costly and risky data migration to happen only once (in 5-year life cycle).
  • The Agreement enables consistent and predictable budgetary planning.

 

This agreement would be created to allow organizations to buy best in class infrastructure at sufficient scale to allow the organization to be supported today and into the future. This would be beneficial to our customers by eliminating the need to incrementally improve their infrastructure and remove all of this risks of frequent migrations with this incremental upgrades.

 

Now in theory and on paper we thought this would be a great benefit and something our customers would really gravitate toward, but as my mother used to say, “the proof is in the pudding.”

 

Would customers ever sign an subscription agreement like this? Well, I am happy to announce that we signed our first customer subscription agreement in March of this year. We have several other customers that are working to be next on the list for this option.

 

If this sounds like something you may be interested in looking in to, we would welcome you to contact us to see if this will fit your needs!!

Tom Savage

Hello, my name is Tom Savage. I am the Inside Sales Manager of Zunesis. I have worked with Zunesis for over 8 years. I have, and will continue to, work diligently to serve both our customers and my teammates to the best of my ability. My team and I pride ourselves in being responsive to customers and putting the customer first in every situation. We passionately believe that customer service and satisfaction are the differentiator for Zunesis in a crowded marketplace. I enjoy the work that I do, the customers I serve, and the co-workers I with whom I work. In my downtime, I enjoy golf, running, being outdoors, and spending as much time as I can with my wife and 3 kids. I also enjoy watching THE Denver Broncos, Penn State Football, and Pittsburgh Penguin Hockey.