Feeds

HP offers ‘pay as you go’ pricing for servers

Like a cell phone contract

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Hewlett-Packard yesterday launched a 'utility pricing model' for its servers which it said would help customers match IT spending with their needs, as their revenues fluctuate.

With HP Pay per Use pricing, customers will be billed based on the actual computing power used during any given month, allowing application service providers (ASPs) to bill their end-users in what HP describes as a utility-like manner. HP also sees the program as attractive for enterprise customers, such as retailers, whose systems are more heavily used at particular times of the year.

The pricing model is available today for customers acquiring Unix HP Superdome servers and HP's Intel IA-32-based L-series servers. Its unclear whether the utility pricing model will be extended over time to HP's full range of servers and software products, such as its OpenView management suite.

Chris Franklin, HP's Unix server marketing manager, said it had the flexability to introduce the pricing model across the board but was initially concentrating on customers of its Intel-based and top of the range Superdome servers.

Some HP customers have been offered utility pricing on a case by case basis and HP now feels the time is right to introduce the facility, which was promised at the launch of Superdome, to all its customers of particular products.

Franklin acknowledged that firms might be reluctant to invest in expensive server technology during the current economic slowdown. He said the pricing model, which HP is the first in the market to introduce, "will take the risk out of buying servers".

HP's utility infrastructure includes remote management and metering technology, so HP Pay per Use customers receive monthly statements that reflect the average of peaks and down-cycles in usage over a given month. The invoice reflects a base payment and a variable, usage-based payment, which HP described as similar to the payment structure of a typical cellular phone service.

The pricing model is described by HP as complementing its Instant Capacity on Demand (iCOD) - which unlike Pay Per Use only allows users to pay for more capacity - and HP Pay per Forecast pricing programs, which doesn't take account of real use. ®

External Links

HP Launches Flexible Pricing Program for Servers

Related Stories

HP warns of more cost cuts in wake of weak May sales
HP PC biz to 'lose $100m' in 2001
HP's Superdome is slow seller
Superdome service is mandatory, admits HP
HP racks up 9000 L-Class
HP wears Itanium underpants and sings the Intel song

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.