COVER STORY n say that they see a growth in their opex budgets next year (the study is yet to be released so specific numbers can’t be shared), instead of capex, and you begin to see why resellers need to start looking at opex models more seriously. But more flexible payments (read lower upfront costs) are not the only benefit user organizations look for in an opex model. More often than not an opex model is associated with a non-onpremise model. And organizations—even large
ones with healthy IT teams—love the hands-off, hassle-free, value proposition non-on-premise models offer. Subscription-based models are not exactly new. There are large hosting and service providers who already offer pay-per-use models to their enterpriseclass customers for both hardware and software. But tier-2 solution providers have, so far, been inclined towards capex models, primarily because of the huge upfront investments
they entail and the lack of instant returns. A few, who despite being not extremely cash-rich, have decided to take the bull by the horns. And, they have come up with smart strategies—like services revenue, shorter payment cycles, large volumes transactions and strategic partnerships—to counter cash flow challenges. Here are four companies who have dipped their toes into the opex pool and then decided to plunge.
THE FOUR ROADS TO OPEX
THE NEW-AGE DISTRIBUTOR >>> xx Kryptos Networks offers flexibility to the providers of flexibility.
THE RENTING ROUTE >>> xx LA Technologies demonstrates why the renting business isn’t as passé as you might think.
THE TRANSACTION TYCOON >>> xx THE CLOUD WAY >>> xx Ace Data Devices believes that the opex-model is going to explode.
Netspider Infotech shows you how a transaction-based model can be profitable, despite the sizeable investments for partners.