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Maximal
flexibility with minimal commitment.
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Free your
business from heavy financial commitment on resources that you are not
utilizing.
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The Utility Model is
based on the simple premise that you should not pay for more than what
you use. The traditional procurement approach necessitates that you
plan ahead for forecasted capacity so that your resources can support
your business when the requirement arises. The downside of this
approach is that these excess capacities are wasted until the actual
requirement arrives. Any additional load beyond what you planned for
will also be hard to activate due to budgeting and delivery lag
constraints.
With Utility Model, you not only not have to invest upfront, you also
get to activate additional resources as when your business requires
them. You only pay for the resources upon their activation.
And unlike other similar models offered by the market, Peremeks'
Utility Model also gives you the option to locate the resources in your
own premise so that you have dedicated access to the resources. The
availability of this option is critical when you do not wish to share
your resources with other users.
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UTILITY MODEL IN A GLANCE
You start off with a baseline
config, with only a small baseline fee.
You have the option to activate resources, which will be charged a
variable fee.
And you have the option to opt for technology refresh.
UTILITY MODEL CONCEPTS
You acquire computing power,
not specific models.
You don't pay upfront the entire cost, but instead a recurring, usually
monthly, fee.
You don't get the full config at once. You start off with a base, then
you activate additional resources on demand.
You don't own the machine and becomes heavily laden in asset.
WHEN IS UTILITY
MODEL MOST SUITABLE
Competitive business environment
Need to keep technological relevance
Capacity demand is varied
IT budget is limited
Needs forecast-able budget
WHAT IS NOT UTILITY MODEL
It is NOT leasing
It is NOT grid computing
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Graphical representation of
possible
cost savings using utility model
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Baseline payment + Pay as use ($A+$B+$C+$D+$E)
= approx. 85% Full payment.
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Best of all, Peremeks
has integrated the Utility Model across our full range of offerings.
Our unique and powerful Utility Model allows you to focus on your core
business, doing what you do best. Leave the rest of the work in our
good hands.
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Financial illustration
of the difference between upfront
purchase, leasing and utility model
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Figures
are based on an example and are for illustrative purpose only.
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YR
1
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YR
2
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YR
3
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YR
4
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YR
5
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TOTAL |
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upfront
purchase
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| leasing |
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utility
model
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1,000k1
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100k2 |
100k2 |
1,200k
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| 300k |
300k |
300k |
300k |
300k |
1,500k3 |
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| 120k4 |
150k4 |
200k4 |
280k4 |
350k4 |
1,100k |
1
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Up-front investment includes hardware and 3-year maintenance
fee.
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2
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Annual maintenance charges at 10% of original hardware
purchase cost.
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3
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Total figure based on flat interest rate of 5% p.a.
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4
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Yearly figure based on baseline payment and increasing
variable component due to activation of additional resources to match
increased business requirements.
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In short, this
capacity-on-demand approach gives you maximum flexibility and maximum
options with minimum commitment.
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