A base monthly payment is made to cover minimum usage
For the rest of the monthly payment, customers are charged for actual usage,
creating a direct link between IT costs and business demand. Businesses with
seasonal activity or unexpected new business opportunities will have capacity
available and will only pay for the IT power they need, when they need it.
This offers significant advantages to customers during slow periods as they
will not pay for processing they do not utilise. In addition, customers do
not have to risk having additional processors instantly available during periods
of high activity.
Metering technology is used to read the actual utilisation of each central
processing unit (CPU) and charges a customer for the processing power they
use. CPU utilisation data is automatically collected, encrypted and securely
transmitted to HP's billing engine.
The equipment devices and automated metering technology are physically located
at the customer site.
Stakeholders and Relationships:
HP. Work with the customer IT department. Monthly billing
is usually through the customer finance department.
customer IT department. Support the users, and work with
HP technical support teams.
Users.
Financial:
Cost effective method of paying for fluctuating demand.
Because the vendor takes some of the risks, not likely to be cost effective
for stable demand.
Customer sees IT costs as monthly bill, and therefore more transparent.
Environmental:
Charging based on usage could reduce energy use. This will
probably depend whether a user is internally charged out of his/her budget
for this use.
Equipment should have a longer use life, since extra capacity is built in.
Social:
Unlikely to have much social impact..
Potential Market:
Could have high use potential if price is competitive..