Reply to post: Capex to opex in a world of low interest rates

Selling hardware on a pay-per-use or subscription model is a 'lie' created by marketing bods

DavCrav

Capex to opex in a world of low interest rates

SaaS is already bad enough for the majority of instances. One can see that it's dreadful for the customer by the quoted stock price of Adobe. It only goes up that much because customers are paying a lot more. HaaS is insane unless you very rarely need the equipment.

I recently had to buy a machine for compute. The budget was about £6k, so not massive, but you can get something fairly decent for it. We were offered HaaS by one of our departments. A 5-year contract, two logins, some amount of data throughput, and it would cost more than buying a computer direct from Lenovo, which I can run as long as I want with as many users as I want. The previous machine is still going after 8 years, so their HaaS looked even more like a terrible deal.

Add into the mix low interest rates, which makes it much cheaper to move open to capex, and I don't see why anyone who isn't forced to would do it.

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