The ongoing digital transformation of the enterprise requires key elements to be addressed including operational agility, the customer experience and the integration of digital technology. Digital transformation also requires many things including an infrastructure that aligns with business growth, a way to provide employees the right services wherever they are, and the means to deliver frequent updates and upgrades to the communications system. This digital transformation environment has elevated the importance of cloud services.
Many business owners believe that the cost advantage of cloudbased
solutions is one of the most important benefits. Below are
five important financial benefits:
1. The ability to shift from capital expenditures (CAPEX)
to operational expenditures (OPEX)
2. A pay-as-you-go business model
3. Greater financial agility
4. Reduced IT (Information Technology) costs
5. Service delivery time savings
Let’s take a deeper look at these five points and see how
Alcatel-Lucent OpenTouch® Enterprise Cloud can help businesses
streamline operations and save money.
Minimum or zero upfront investment
A cloud business model can reduce or eliminate the investment required to launch new
projects and lets businesses re-align cash-flow requirements with solution adoption,
over time. Freed from the risks associated with upfront investments, IT departments
can focus on value-added activities that promote the business.
Overcome expenditure limitations
While obtaining capital for large purchases may be difficult for any size of
organization, it is especially difficult for smaller organizations where rigorous
debt to equity ratios are applied and can restrict the amount of capital a company
can secure. This makes it difficult for organizations to sufficiently justify capital
expenditure and get approval for projects. Moving to an OPEX model removes the
financial scrutiny and allows projects to be undertaken, unconstrained by capital
Flexibility to terminate costs as required
An OPEX business model provides organizations with the flexibility to terminate
costs to match business demands. With a CAPEX business model, acquiring a server
or software requires a full financial commitment. Regardless of whether it is being
used, the ongoing costs (depreciation or financing costs) still need to be managed.
Contrast this with the OPEX business model where payments can rapidly cease if the
item is no longer required.