Everything as a service: Is this the end of CapEx?

The cloud revolution allowed compute and storage to be delivered as a service. This has proven to be a popular model for the enterprise, though will this acceptance endure for specialized services?

Everything as a service: Is this the end of CapEx?

At HPE Discover 2019, TechRepublic's James Sanders spoke with Enterprise Strategy Group's Bob Laliberte about how the cloud revolution allowed compute and storage to be delivered as a service. The following is an edited transcript of the interview.

Bob Laliberte: If you took some of the comments that Antonio Neri made about the cloud isn't a destination, it's an experience. Them putting down... and you're seeing people come up with more subscription-based services, but certainly they're the first company to throw down the gauntlet and say, "We're going to deliver every piece of our portfolio as a service," and allow people to do either that subscription, consumption-based or pay person use type of a model across their entire portfolio. The idea being that what I looked at it is really challenging the status quo of cloud-first, meaning public cloud, and that cloud-first could also just be that consumption model. It could be on-premises, just delivered and you experience it as a public cloud.

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I don't think it just delivering it as a service changes anything, right? If they're going to be on-prem, there'll be on-prem. If they're going to be in a hybrid environment, there'll be in a hybrid environment. I think instead of using a CapEx model, which is a step function, they're going to enable organizations to have a more seamless, scalable infrastructure where they're only paying for what they use.

I don't see that necessarily impacting. It should enable more. It's kind of like it's saying, "Well, what would be going to the public cloud be like for programmers because they can just simply put a credit card down and get more storage, more infrastructure." I think HPE is trying to do that for the on-premises side as well. I said the other big pieces around that as they started wrapping in some of Aruba, and they're also targeting more of the mid-market, and as part of the mid-market, they announced partnerships with Equinix and CyrusOne where they can actually house that infrastructure, almost like a public cloud, if you will, but in those to help accelerate the adoption by the mid-market companies.

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