Server room with tablet showing usage stats

HP launches pay-per-use model for modernizing networks

Hewlett-Packard Co. is taking a page from utility companies’ pricing strategies to broaden its offerings to customers.

The giant computer maker and services provider has just unveiled a pay-per-use managed network program, the FlexNetwork Utility Advantage Program, that offers a new model for modernizing network infrastructure, according to NetworkWorld. The online news source cites analyst firms Gartner and Forrester as calling the enterprise networking model “the next evolutionary step toward the cloud.”

HP's innovative program makes it possible to get new network infrastructure and pay for it on a per-use basis from an operating budget rather than from a capital budget. In essence, HP is applying cloud economics to on-premise networking, NetworkWorld said.

HP explained the new program by saying that organizations and public-sector agencies are being challenged by aging infrastructures built on legacy networks that simply cannot support initiatives like cloud, mobility, bring your own device BYOD and rich media.

The company said the benefits of the FlexNetwork Utility Advantage Program include aligning expenses with actual use; speeding cloud mobility and BYOD initiatives; and bring cloud economics to campus and branch networks.

HP isn’t the first to introduce such a pricing scheme. As GCN reported last April, Amazon Web Services’ CloudSearch lets organizations easily integrate sophisticated search functionality into their applications and websites. It offers pay-as-you-go pricing with no up-front expenses or long-term commitments, Amazon officials said.

Developers simply create a search domain and upload the data they want to be searchable, and Amazon CloudSearch automatically provisions the technology resources required and deploys the highly tuned search indexes needed, Amazon officials said.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

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